Some seven weeks ago, hedge fund investor Bill Ackman laid out his rationale for shorting long-term US bonds, and I took exception.
Since then, 30-year Treasury yields are up about 34 basis points and grazed the highest level in 12 years, and Ackman has taken to X — the platform formerly known as Twitter in which he’s an investor — to double down on his earlier call. But while I’ve been humbled by the moves of recent weeks, I still think that his logic is flawed and that if he makes any more money on the trade, he may be right for the wrong reasons.
