Morgan Stanley Cuts 10-Year Notes Yield

Morgan Stanley MS on Tuesday reduced its yield call yet again for the 10-year note by the end of the year. The move was a result of the surge in the bond market. The company said the 10-year note yield would likely be 3% by the end of the year, as compared to the 3.5% projected in August. The revised outlook compares to a yield of 2.648% in recent trading. In the first quarter, Morgan Stanley had projected the yield at 5.5%. Morgan Stanley said that the downward revision reflects the slowdown in economic growth in the second half of the year. Last month, MS cut its economic growth forecast for the second half of the year to a range of 2% to 2.5%, from the previous projected range of 3% to 3.5%. The yield has been under pressure due to concerns surrounding a slowdown in the pace of recovery in the US economy. The yield touched 2.418% on August 25, hitting the lowest level since January 2009. Read more from Benzinga's Markets.