Via a recent Morgan Stanley note on USTs, see yield being sent lower by an eventual Federal Reserve pivot, initially in rhetoric::
- We maintain a bullish stance on government bond duration and expect yields to trend lower.
- Stubbornly hawkish central bank rhetoric remains the biggest impediment to a larger bond market rally, but could provide dip-buying opportunities in preparation for a rhetorical policy pivot
This article was written by Eamonn Sheridan at www.forexlive.com. Source