Morgan Stanley currently holds a neutral stance on U.S. Treasury bonds

Golden Ten Data reported on March 23 that strategists at Morgan Stanley stated in a report that they currently recommend a neutral strategy 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 prefer to maintain a neutral stance on U.S. Treasuries until we have a clearer understanding of the impact of the Iran conflict on Federal Reserve policy and (equally importantly) fiscal policy." They also noted that speculation about further fiscal stimulus measures may also explain why U.S. Treasuries have not responded to risk-off sentiment as expected. They said: "Of course, without a dovish Federal Reserve, U.S. Treasuries are not favorable for hedging risks on higher-risk assets."