Citi: Neutral on U.S. Treasury Duration and Yield Curve Shape

On October 21, Jinshi Data News, strategists from Morgan Stanley’s research department stated that they maintained a neutral view on the duration of US Treasury bonds and the shape of the yield curve before the US election. They stated, ‘Once investors see the election results and react, the interest rate market may price risk premiums around new baselines for the future.’ They said that investors’ views after the election may be ‘very different’ from the current ones. Duration refers to bonds that are more sensitive to interest rate changes, usually longer-term bonds.