Morgan Stanley currently takes a neutral stance on US Treasury bonds.

CycleProphet · 2026-03-23T08:21:40+00:00

Morgan Stanley strategists recommend maintaining a neutral stance on U.S. Treasuries while awaiting further clarity on the economic and Federal Reserve rate implications of the Middle East conflict. They point out that fiscal stimulus speculation is influencing Treasury market reactions, and a non-dovish Federal Reserve is unfavorable for risk hedging.

CycleProphet

2026-03-23 08:21:40

Abstract generation in progress

Deep Tide TechFlow News, March 23 — According to Jin10 Data, Morgan Stanley strategists stated in a report that they currently recommend a neutral stance on U.S. Treasuries until the impact of the Middle East conflict on the economy and the Federal Reserve’s interest rate path becomes clearer. They said, “We lean towards a neutral stance on U.S. Treasuries until we have a clearer understanding of how the Iran conflict affects Fed policy and (equally important) fiscal policy.” They also mentioned that speculation about additional fiscal stimulus measures might explain why U.S. Treasuries haven’t responded to safe-haven demand as expected. They added, “Of course, a non-dovish Fed is also not conducive to using U.S. Treasuries to hedge risks in higher-risk assets.”

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