Morgan Stanley's interest rate strategists suggest that investors should bet on lower maturity U.S. Treasury yields relative to longer maturities as expectations for a rate hike by the Federal Reserve weaken
Morgan Stanley's interest rate strategists suggest that investors should bet on lower maturity U.S. Treasury yields relative to longer maturities as expectations for a rate hike by the Federal Reserve weaken. The result will be a steepening of the U.S. Treasury yield curve, a widening of the spread between shorter and longer maturities. Specifically, Morgan Stanley recommended on July 2 that the spread between the 7-year and 30-year U.S. Treasury bonds widens.