Morgan Stanley: Watch For Flattening Yield Curve With Rate Increases

With the US Federal Reserve raising interest rates by 25 basis points on Wednesday, there was a degree of flattening yield curve even though the US Ten Year note broke important resistance near the 2.5% yield level. Morgan Stanley says that markets could see higher interest rates before the year is out, but it might be the short end of the yield curve that moves more on a relative basis. As interest rates rise, flattening yield curve expected to result as dot plot nuance considered When the US Federal Reserve raises interest rates in the future, those increases are not…