Treasury Notes to rise higher in 2010: Morgan Stanley

According to David Greenlaw, chief fixed-income economist at Morgan Stanley in New York, yields on benchmark 10-year notes will climb about 40% to 5.5%, the biggest annual increase since 1999. The surge will push interest rates on 30-year fixed mortgages to 7.5% to 8%, almost the highest in a decade, Greenlaw said.

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