Bill Ackman Says He Covered His Short Bet On US Treasuries
Billionaire investor Bill Ackman said he covered his short bet on US Treasuries, saying “there is too much risk in the world to remain short bonds at current long-term rates.”
(Bloomberg) -- Billionaire investor Bill Ackman said he covered his short bet on US Treasuries, noting “there is too much risk in the world to remain short bonds at current long-term rates.”
“The economy is slowing faster than recent data suggests,” the Pershing Square Capital Management founder wrote in a post on X, the platform formerly known as Twitter.
Ackman disclosed in early August that he was bearish 30-year Treasuries via options both as a hedge for his equity investments and as a stand alone wager. He said at the time that structural changes, such as deglobalization and the energy transition would fuel persistent inflation pressures. He added that a flood of bond supply to fund swelling US budget deficits could also push yields higher.
Yields on 30-year Treasuries fell about 5 basis points to 5.03% Monday. They earlier surged as much as 10 basis points to about 5.18%, the highest since 2007, compared with about 4% at the end of July. Ten-year yield fell 2 basis points to about 4.9% after surpassing 5% for the first time in 16 years.
In late September, Ackman said at an investment conference that he wouldn’t be “shocked to see 30-year rates well through” the 5% level.
“Our view is basically you’re not being paid enough to enter into a 30-year contract with the U.S. government at a fixed price,” he said at the time.
--With assistance from Edward Dufner.
(Updates with 10-year yield in fourth paragraph, previous Ackman comments beginning in fifth paragraph)
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