Morgan Stanley Bond Bulls Who Called Brexit Rally Turn Neutral
- Bank shifts view as U.S., U.K., Germany, Japan yields set lows
- Treasuries decline after 30-year yield sinks to record
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Morgan Stanley, which advised investors to bet on bonds before the U.K.’s vote to leave the European Union sent global debt markets surging, is cooling toward government securities.
The bank revised its outlook after yields in the so-called Group of Four -- the U.S., Japan, Germany and the U.K. -- plunged to records last week. Morgan Stanley, one of the 23 primary dealers that underwrite the U.S. debt, is echoing investor Bill Gross in advising caution following the rally. Ten-year Treasuries fell Monday, while 30-year securities were little changed, after yields on both securities reached record lows on Friday.