Svmuu News Morgan Stanley strategists stated in a report that they currently recommend maintaining a neutral strategy towards US Treasuries until the impact of the Middle East conflict on the economy and the Federal Reserve's interest rate path becomes clearer. They said: "We prefer to maintain a neutral stance on US Treasuries until we have a clearer understanding of the impact of the Iran conflict on Fed policy and (equally important) fiscal policy." They also noted that speculation about more fiscal stimulus measures might also explain why US Treasuries have not reacted to risk aversion as expected. They said: "Of course, the absence of a dovish Fed is also not conducive to using US Treasuries as a hedge against riskier assets." (Jin10)