Morgan Stanley: Higher US real interest rates reflect economic growth and Federal Reserve policy debate

Morgan Stanley Wealth Management stated that the rise in real interest rates reflects the driving factors of economic growth and the debate surrounding policy changes at the Federal Reserve. The institution pointed out that the market's expectations for the pricing of put options for the Federal Reserve's intervention in the market have decreased, and the central bank will be more data-driven than guidance driven. Bond investors simultaneously reflect the expectation of reduced inflation risk brought by oil and increased probability of interest rate hikes.