0612 GMT - Morgan Stanley strategists advocate a neutral position on U.S. Treasurys until there is better clarity on how the Middle East conflict impacts the economy as well as the Federal Reserve's rate path, they say in a note. "We prefer to stay neutral on U.S. Treasurys until we better understand the implications of the Iran conflict, both on Fed policy and--as importantly-- fiscal policy," they say. Speculation on more fiscal stimulus might also help explain why Treasurys did not respond to risk-off sentiment as expected, they say. "Of course, not having a dovish Fed didn't help Treasuries hedge riskier assets either." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

March 23, 2026 02:12 ET (06:12 GMT)

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