<p>Morgan Stanley believes that given the current policy outlook of the Federal Reserve, US Treasuries are in a favorable position to withstand any potential selling pressure that may arise from a decisive victory by the Republican Party led by Donald Trump. The bank advises investors to maintain a neutral stance on US bonds before the November 5th election, stating that the market is unlikely to see a sharp reaction similar to when the Republicans won both houses of Congress in 2016. While that event triggered market bets on significantly tightening monetary policy, Morgan Stanley believes this time will be different. (Bloomberg)</p>

<p>Morgan Stanley believes that the current outlook of the Federal Reserve's policy puts US Treasuries in a favorable position amid potential selling pressure triggered by a landslide victory for the Republican Party led by Donald Trump. The bank recommends investors to maintain a neutral stance on US bonds before the November 5th election, suggesting that market reactions will not be as drastic as in 2016</p>

Republican Party's sweeping victory in 2016 triggers a sell-off of US Treasury bonds. Morgan Stanley believes this time will be different