Bill Ackman is no longer short bonds: here’s why

October 23, 2023 09:35 AM PDT | By Invezz

Bill Ackman is no longer short bonds: here’s why — Image source: Invezz

Ackman covered his position against bonds

The billionaire investor expects demand for long-term Treasurys to pick up in the coming months now that Israel and Hamas are at war.

Geopolitical tensions typically tend to make bonds more attractive as a safe haven. Ackman, therefore, pulled out of his bet against bonds on Monday.

There is too much risk in the world to remain short bonds at current long-term rates. We covered our bond short.

This post he made on X today arrives about a month after the Founder of Pershing Square said higher energy prices and government deficit could push long-term Treasury yields further up to 5.5% (read more).

Watch here: https://www.youtube.com/embed/uTocHzV3jA0?feature=oembed

Ackman’s bet against bonds was a profitable one

Bill Ackman first revealed his short position on the U.S. 30-year bond yield in August.

Since then, yield on the long-term Treasurys has increase by more than 80 basis points that effectively makes his bet a profitable one because yields move inversely versus bond prices.

Despite the decline this morning, the 30-year U.S. Treasury yield remains over 5.0% at writing.

On Monday, Jonathan Conricus – a spokesperson for the Israel Defense Forces said the war could end if Hamas release Israeli hostages and surrenders fully. Conflict between Israel and the militant group of Palestine has been ongoing for over two weeks.

GOP Rep Ronny Jackson is fighting to have Dem Rep Rashida Tlaib banned from all classified intelligence meetings.

He says it’s harmful to Americas safety when any Congressional member supports Hamas, are antisemitic, then attend these briefings on the Israel/Hamas war.

Should… pic.twitter.com/zxXSWE2ODR

— 🇺🇸ProudArmyBrat (@leslibless) October 22, 2023

The post Bill Ackman is no longer short bonds: here’s why appeared first on Invezz

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