What action will the Fed take next and where is the market headed? In this special episode of the Basis Points podcast, Kevin Flanagan is joined by Matt Hornbach Global Head of Macro Strategy at Morgan Stanley. During the episode, the speakers offer their insights and perspectives on Morgan Stanley’s 2024 Outlook for the bond market titled Land of Confusion. They also discuss the market’s expectations given the current decline in Treasury yields and uncertainty regarding interest rates.

Basis point: 1/100th of 1 percent.

Federal Open Market Committee (FOMC): The branch of the Federal Reserve Board that determines the direction of monetary policy.

Yield: The income return on an investment. Refers to the interest or dividends received from a security that is typically expressed annually as a percentage of the market or face value.