Bond trading set to surge in 2016: Morgan Stanley

New York

MORGAN Stanley, one of the Wall Street banks that deals directly with the Federal Reserve, cut its bond yield forecasts for 2016 and said the US central bank will wait until December before raising interest rates.

"The global backdrop for rates markets looks so supportive that 2016 may become known as the 'Year of the Bull'," it said, in a report that the company issued on Sunday by analysts including Matthew Hornbach, head of global interest-rate strategy in New York.