Morgan Stanley believes that given the current policy outlook of the Federal Reserve, US Treasuries are in a favorable position to withstand any potential selling pressure that may arise from a decisive victory by the Republican Party led by Donald Trump. The bank advises investors to maintain a neutral stance on US bonds before the November 5th election, stating that the market is unlikely to see a sharp reaction similar to when the Republicans won both houses of Congress in 2016. While that event triggered market bets on significantly tightening monetary policy, Morgan Stanley believes this time will be different. (Bloomberg)