A group of Morgan Stanley-led banks sold $5.5 billion of debt tied to Elon Musk’s social-media platform X after receiving stronger-than-expected demand from investors, according to people with knowledge of the matter.

Banks including Morgan Stanley, Bank of America, and Barclays offered a deal to investors seeking minimum commitments in the hundreds of millions.

Banks led by Morgan Stanley have sold $5.5 billion of some $13 billion of debt they lent to support Elon Musk's $44 billion acquisition of Twitter, now called X, in 2022, said a source with knowledge of the deal.

Morgan Stanley joined Barclays and Macquarie in forecasting a single 25 basis point interest rate cut by the U.S. Federal Reserve this year, citing uncertainty from President Donald Trump's tariff policy.

Morgan Stanley has now given up on its contrarian stance the Federal Reserve will cut interest rates in March.

Interest rates won’t fall fast enough to bail you out of a tight situation.” 💰 Stay ahead of the markets: Subscribe to TheStreet's free daily newsletter💸 When we talk about Fed rates, we refer to the Fed funds target rate,