<p>Morgan Stanley strategists stated that the yield on U.S. Treasury bonds is positively correlated with the market-implied low point of the Federal Reserve's policy interest rate. They predict that this could lead to the U.S. 10-year Treasury yield falling below 4%. They pointed out that if the market-implied federal funds rate low point drops from the current level of around 3.65% to 3.25% in October 2024, the U.S. 10-year Treasury yield could fall below 4%</p>

<p>Morgan Stanley strategists predict that if the market-implied Federal Reserve policy rate low point drops from nearly 3.65% to 3.25% by October 2024, the yield on the U.S. 10-year Treasury bond could fall below 4%. They noted that U.S. Treasury yields are positively correlated with the market-implied rate low point</p>

Morgan Stanley: If the implied interest rate low in the market declines, the 10-year U.S. Treasury yield may fall below 4%