As 2025 begins, Morgan Stanley analysts highlight a renewed push towards 5% yields on 10-year U.S. Treasuries, driven by fiscal credibility concerns and global market dynamics. The strategists note that the 10-year Treasury yield is once again nearing the 5% mark, a level not seen since the 2022 hiking cycle and the bond market sell-off in late 2023. "2025 starts with a bang: another run at 5% 10-year US Treasury yields," the report states, emphasizing the impact of fiscal policy and central bank actions on financial conditions. The analysts recommend maintaining a neutral stance on duration, as they anticipate further developments in the fiscal landscape and central bank policies.