However, Morgan Stanley is now pushing back against that assertion, saying that Treasuries are still offering value and should be fine. MS says that the Fed is not likely to react sharply to inflation and that the Chinese aren't going to stop buying Treasuries outright, both factors which will support the market. FINSUM : While there are some headwinds related to possible tightening, on the whole there are a number of fundamentals which seem likely to continue to support both Treasuries and credit (like demographics-we know we often mention this point).