Morgan Stanley stated the rise in 10-year Treasury yields is sensible and a reflection of the growing confidence in the U.S financial outlook, according to Jim Caron, worldwide fixed-income portfolio supervisor at the financial investment bank.The 10-year Treasury yield jumped above 1.7% on Thursday, its highest level in more than a year.”The method that I see it is that as we sit here around 1.75%, 1.7% in the 10-year note, I think this is a sensible area where we can expect some consolidation,” he said Friday, referring to how the yield will likely remain within a range, neither continuing much greater or reversing much.Wildly bullish on U.S. growthAfter the Feds two-day policy conference concluded Wednesday, the U.S. central bank said it sees stronger economic development than formerly estimated, forecasting gross domestic product would rise to 6.5% in 2021. Thats going to actually assist with confidence and intake– consumption being 70% of GDP,” Caron said.Caron also minimized concerns that the fiscal relief bundle might lead to higher inflation.

Morgan Stanley said the rise in 10-year Treasury yields is reasonable and a reflection of the growing self-confidence in the U.S financial outlook, according to Jim Caron, global fixed-income portfolio supervisor at the investment bank.The 10-year Treasury yield jumped above 1.7% on Thursday, its highest level in more than a year.”The way that I see it is that as we sit here around 1.75%, 1.7% in the 10-year note, I think this is a reasonable area where we can expect some combination,” he said Friday, referring to how the yield will likely remain within a range, neither continuing much higher or reversing much. Thats going to truly assist with self-confidence and intake– consumption being 70% of GDP,” Caron said.Caron also downplayed issues that the financial relief package might lead to greater inflation.

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