Morgan Stanley's bullish view on U.S. Treasuries c

Aihucha News, September 11: As the market may be too optimistic about the prospect of a soft landing for the U.S. economy, Morgan Stanley countered U.S. Treasury short sellers, saying that investors should buy U.S. sovereign bonds. Strategists including Matthew Hornbach of the investment bank in New York wrote in a research note that even if economic growth does remain relatively healthy, U.S. Treasuries may be supported as inflation is likely to continue to slow. "We continue to recommend investors take an overweight stance on government bond duration," the strategists said. The report said that Morgan Stanley recommended that clients buy 5-year U.S. Treasury bonds and 30-year inflation-protected bonds. Morgan Stanley's bullish view on U.S. Treasuries goes against many of its Wall Street peers. JPMorgan last week raised its forecast for U.S. Treasury yields, raising its year-end target for 10-year Treasury yields from 3.85% to 4.20% and abandoning its failed call for a bullish 5-year Treasury note. Bank of America last week advised clients to take a neutral stance on U.S. Treasuries, saying economic resilience could cause the 10-year Treasury yield to rise as high as 4.75% before stabilizing around 4%.