Global Macro Commentary: May 27: Rates Hold Near Highs

Research evidence excerpt

Global Macro Commentary: May 27: Rates Hold Near Highs

Update

May 27, 2026 09:55 PM GMT

Morgan Stanley & Co. LLCMGlobal Macro Commentary | Global Molly Nickolin

Strategist

May 27: Rates Hold Near Highs Molly.Nickolin@morganstanley.comLingdi Xu +1 212 761-3592

Economist

Lingdi.Xu@morganstanley.com +1 212 761-2957

Oil fell on mixed Hormuz headlines; RBNZ leaned hawkish; Fed Sofia Palacios

officials maintained tightening optionality; AI strength supported StrategistSofia.Palacios@morganstanley.com +1 212 761-0428

equities; DXY at 99.23 (+0.1%); US 10y at 4.48 (-0.2bp). Morgan Stanley Asia Limited+

Gek Teng Khoo

Lower energy prices supported risk sentiment and moderated inflation concerns, Strategist

though hawkish central-bank rhetoric kept global rates elevated. Gek.Teng.Khoo@morganstanley.com +852 3963-0303

Morgan Stanley MUFG Securities Co., Ltd.+

Developed Markets

Hiromu Uezato

• US rates traded in wide intraday ranges as markets reacted to conflicting Hiromu.Uezato@morganstanleymufg.com +81 3 6836-8431

reports around a potential US-Iran framework to restore shipping

Morgan Stanley India Company Private Limited+

through the Strait of Hormuz. Treasuries initially rallied after Iranian state

Nimish M Prabhune

media reported a draft memorandum that could normalize maritime traffic Strategist

within a month, pushing oil sharply lower and briefly taking 10y yields Nimish.Prabhune@morganstanley.com +91 22 6996-1862

toward 4.45%. The move partially reversed after the White House dismissed Morgan Stanley & Co. International plc+

the report as “a complete fabrication,” leaving the curve modestly twist- Maria Chiara Russo

flatter by the close (2y: +0.1bp; 10y: -0.2bp; 30y: -0.4bp). The $70bn 5y Maria.Chiara.Russo@morganstanley.com +44 20 7677-3499