Morgan Stanley strategists advise clients to short 10-year inflation-protected securities (TIPS) and buy 10-year US Treasuries in anticipation of profiting from potential reversal of inflation cooling and breakeven rate. Aryaman Singh and other strategists suggest betting that the 10-year breakeven inflation rate will fall from the current around 2.4% to 2.15%, with a stop-loss target set at 2.5%. They expect the yield on Treasuries to decline faster than TIPS yields as inflation cools.
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Morgan Stanley recommends Long US Treasury bonds, betting on their outperformance of inflation-protected bonds
Morgan Stanley strategists advise clients to short 10-year inflation-protected securities (TIPS) and buy 10-year US Treasuries in anticipation of profiting from potential reversal of inflation cooling and breakeven rate. Aryaman Singh and other strategists suggest betting that the 10-year breakeven inflation rate will fall from the current around 2.4% to 2.15%, with a stop-loss target set at 2.5%. They expect the yield on Treasuries to decline faster than TIPS yields as inflation cools.