Morgan Stanley Raises Outlook For 10 Year Debt

Morgan Stanley MS raised its outlook for the yield on 10 Year U.S. Treasury debt today, ratcheting it up to 3.25% from 3% for the end of the year and to 4% from 3.75% for the end of next year. "In our view, the rise primarily reflects the influence of the fiscal package on future economic growth; the 30 basis point rise in real rates since the package was announced, along with a further rally in risk assets and the dollar, suggests that's the case. But budget concerns could also be playing a role," Morgan Stanley said. The last yield on the 10 Year debt was 3.32%.