I rarely bother to make any note at all of the “calls” made by the Big Banks, on precious metals markets, or any others. However, sometimes the nonsense which emanates from these fraud-factories is so extreme and absurd that it requires some sort of acknowledgment (i.e. condemnation). This is one of those cases.

Let’s begin with a brief review of bond-market fundamentals. By now, most people here should know the basic equation of all bond markets: bond prices and bond interest rates are the direct inverse of each other. In other words, when interest rates rise, bond prices fall. When bond prices rise, it means the “yield” (i.e. interest rate) has fallen.

Currently, all Western interest rates are at near-zero or lower. In any rational world, this is the ABSOLUTE, THEORETICAL MAXIMUM for bond prices, since (in a rational universe) it’s impossible for interest rates to go to zero (let alone “negative” rates). Of course we don’t have a rational world, but even in our insane/criminalized world, what Morgan Stanley is counseling today is ridiculous gibberish: buy bonds.

There are only two, possible ways in which this “buy” call could be interpreted:

1) Morgan Stanley is expecting interest rates to go STRONGLY NEGATIVE, in which case the (fraudulent) bond prices would rise, or;
2) Morgan Stanley is expecting bond prices to FALL (or stay stable), but expects everything else to fall much farther/faster.

Let’s look at these two possibilities. In fact, we can quickly reject #1, as soon as we read the first line of this gibberish propaganda:

Morgan Stanley, one of the Wall Street banks that deals with the Federal Reserve, cut its Treasury yield forecasts for 2016 and said the central bank will wait until December before raising interest rates. Benchmark 10-year yields fell from a six-week high.

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