1527 ET - Inflation is likely to be softer than markets expect, creating an opportunity to invest in short-term Treasurys, Morgan Stanley's Vishal Khanduja says. "Inflation from a commodity-based supply-side shock in a developed country like the U.S., which is a net exporter of oil, should not be that much of a worry," he says. Khanduja has increased allocation in the front end, betting on up to two interest rate cuts by the Fed this year. Markets are mostly pricing no cuts in the next 12 months. Khanduja also sold investment-grade corporates, which he considers too pricey. He is buying agency mortgage-backed securities and emerging market bonds, including Brazil and Mexico. (paulo.trevisani@wsj.com; @ptrevisani)

(END) Dow Jones Newswires

April 21, 2026 15:27 ET (19:27 GMT)

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