Morgan Stanley Fixed-Global Macro Commentary September 24-110465540

M Update Global Macro Commentary | Global September 24Morgan Stanley & Co. LLCAlexandra MaierStrategist Alexandra.Maier@morganstanley.com +1 212 761-0428 Morgan Stanley & Co. International plc+Dominic J KrummenacherStrategist Dominic.Krummenacher@morganstanley.com +44 20 7425-9781 Morgan Stanley & Co. LLCLenoy DujonUS/Canada Economist Lenoy.Dujon@morganstanley.com +1 212 761-2779 Morgan Stanley & Co. International plc+Lorenzo TestaStrategist Lorenzo.Testa@morganstanley.com +44 20 7677-0337 Morgan Stanley MUFG Securities Co., Ltd.+Hiroki YagiResearch Associate Hiroki.Yagi1@morganstanleymufg.com +81 3 6836-5412 Morgan Stanley Asia Limited+Gek Teng KhooStrategist Gek.Teng.Khoo@morganstanley.com +852 3963-0303 Morgan Stanley & Co. International plc+Arnav GuptaStrategist Arnav.Gupta@morganstanley.com +44 20 7677-0382 PBoC unveils stimulus package; US consumer confidence disappoints; BoJ's Ueda reiterates less hawkish stance; RBA remains on hold; European duration bull-steepens; Fed's Bowman sees upside risk to inflation; DXY at 100.36 (-0.5%); US 10y at 3.728% (-2.1bp).• The PBoC unveils broad stimulus measures to support the property and equity markets alongside policy rate and RRR cuts; Asian and European equities rally (CSI 300: +4.1%; Euro Stoxx: +1.1%) while commodity prices soar (Iron Ore: +7%; Copper: +1.5%). • USTs bull-steepen after the US Conference Board Consumer Confidence survey unexpectedly falls, in its largest decline in over three years, with consumers more pessimistic about the labor market. • JGBs bull-steepen and USD/JPY gains intraday as BoJ Governor Ueda reiterates his less hawkish stance, stating that there are a variety of uncertainties that could impact the outlook for Japan’s economy which enables the BoJ to spend more time at current rate levels.• AUD gains 0.6% against the USD as the RBA maintains its policy rate, as expected, signaling that the Bank intends to stay on hold for an extended period.• European duration bull-steepens (2y: Bund: -5bp) as the market-implied probability for an October ECB cut rises to 60% after the Germany Ifo Survey shows further deterioration in business confidence and ECB Governing Council Member Muller states that an October cut is not to be excluded. • Fed Governor Bowman says she sees greater risks to price stability than the labor market as “upside risks to inflation remain prominent” and core inflation is "uncomfortably" above target. Please refer to our latest Global Macro Strategist (Ground Control to Major Dove), Global EM Strategist (A Cut Above), as well as our recent publications and collaborations (EM Sovereign Credit Strategy: Rich & Cheap Watch).Developed Markets United States: Overnight, the PBoC unveiled wide-ranging stimulus measures including policy rate, RRR, and mortgage rate cuts alongside stock market support to combat deflationary Morgan Stanley does and seeks to do business with companies covered in Morgan Stanley Research. As a result