Morgan Stanley believes rising yields ‘reasonable’
Morgan Stanley considers the rapid rise in the yield on the 10-year Treasury note is “reasonable” given forecasts of solid economic recovery later this year, the investment bank’s global fixed-income portfolio manager Jim Caron told CNBC in an interview on Friday.
“This is the level the market expected,” Caron explained, adding that it is a reflection of growing confidence in the US economy.
Earlier this week, Federal Reserve Chairman Jerome Powell refused to comment on rising Treasury yields, stating only that the central bank monitors “a broad range of financial conditions” which show that conditions are “accommodative and that is appropriate.”
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