Morgan Stanley say its lonely being bullish US Treasuries, advise to buy the dips

<p>Morgan Stanley is bullish US bonds but would like clients to join them:</p><ul><li>“They say it’s lonely at the top.”</li><li>“The same can be said for being bullish on bonds at the highs in yield. We stand alone, with conviction, telling investors to buy government bonds.”</li><li>“We continue to suggest investors adopt an overweight stance on government bond duration” </li><li>“Market extrapolation of strong growth into the long term via higher long-term real rates may not pan out, leaving the rise in long-end yields vulnerable to a correction.” </li></ul><p>And technical analysts want to weigh in here? Double toppy supporting the MS view here? </p><p>This chart is of US 10 year yields, weekly candles.Yields are inverse to price in bonds (just maths). </p><p>—</p><p>ps The most attention to MS was paid to their Tesla call:</p><ul><li><a href="https://www.forexlive.com/news/tesla-powers-nasdaq-to-a-1-gain-20230911/" target="_blank" rel="follow">upgrade at Morgan Stanley and fresh price target at $400</a></li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.