Morgan Stanley: It makes sense to be more open to Musk's US government efficiency department

Morgan Stanley expects the 10-year Treasury yield to fall to 3.55% next year, down from 3.75% previously, as they expect the Fed to cut interest rates more than the market expects. The Morgan Stanley team's views on the Department of Government Efficiency and its leaders Elon Musk and Vivek Ramaswamy are also interesting. The team said: "While many doubt whether they can truly cut spending by improving efficiency, we think it makes sense to take a more open attitude given the individuals involved and that this seems to be a focus of Trump's second term. Since the final outcome is still uncertain, we think the term premium will tell how the bond market views this issue." (Jinshi)