Morgan Stanley: Expectations for higher US bond yields after the election, recommend buying 5-year US bonds.

On January 20th, Jin10 Data reported that Morgan Stanley's research strategists suggested investors to go long on the US bond market by purchasing 5-year US Treasury bonds. They wrote, 'The expectation of higher bond yields after the election has given investors the opportunity we want to buy.' They added that now is a suitable time to buy because there is already a lot of term premium and recent inflation data shows signs of slowing down. They also believe that the situation of arbitrage and downward relocation has improved. According to Tradeweb data, the yield on 5-year US Treasury bonds was 4.43% last Friday, and the yield on 10-year bonds was 4.62%.