Morgan Stanley: 'Long' 5-Year Treasuries, Warming Up for Duration

The video discusses the current economic landscape, focusing on yield curve inversion, monetary policy, and the potential for a soft or hard landing. It highlights concerns about recession risks, particularly due to monetary policy tightening and regulatory changes affecting regional banks. The discussion also covers market complacency regarding liquidity issues and the debt ceiling, drawing parallels to past events. Finally, the video explores strategies related to duration and treasury investments, anticipating changes in economic growth and market conditions.

What is the base case expectation for the FOMC's actions in June?

What factors are contributing to the concern about recession risk among investors?

How does the speaker view the risk of a hard landing in the economy?

What is the speaker's perspective on the current market's reaction to liquidity issues?

What is the speaker's strategy regarding duration in the treasury curve?