Bill AcKman covered his short position

https://www.cnbc.com/2023/10/23/bill-ackman-covers-bet-against-treasurys-says-too-much-risk-in-the-world-to-bet-against-bonds.html?__source=androidappshare

Bill Ackman covers bet against Treasurys, says ‘too much risk in the world’ to bet against bonds

PUBLISHED MON, OCT 23 202310:03 AM EDTUPDATED MOMENTS AGO

Yun Li@YUNLI626

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KEY POINTS

• Pershing Square’s Bill Ackman revealed Monday he covered his bet against long-term Treasurys.
• The hedge fund manager believes investors may increasingly buy bonds as a safe haven because of growing geopolitical risks.
• Ackman also added that he removed the short because of concern about the economy.Bill Ackman, Pershing Square Capital Management CEO, speaking at the Delivering Alpha conference in NYC on Sept. 28th, 2023.

Adam Jeffery | CNBC

Pershing Square’s Bill Ackman revealed Monday he covered his bet against long-term Treasurys, believing that investors may increasingly buy bonds as a safe haven because of growing geopolitical risks, the latest of which being the Israel-Hamas war.

“There is too much risk in the world to remain short bonds at current long-term rates,” Ackman said in a post on X, formerly known as Twitter, on Monday morning. “We covered our bond short.”

 

The billionaire hedge fund manager first disclosed his bearish position on 30-year Treasurys in August, betting on elevated yields on the back of “higher levels of long-term inflation.” The 30-year Treasury yield has risen more than 80 basis points since the end of August, making Ackman’s bet profitable.

Bond prices move inversely to bond yields, so Ackman’s bet against bonds was, in effect, a gamble on higher rates.

The 30-year Treasury yield fell 6 basis points to 5.01% on Monday after Ackman’s comments.