(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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