HuatRocket
2023-10-27

Ackman Waves the White Flag on Treasuries - Is it Time to Go Long?

Just a few days ago, our man Bill Ackman sent shockwaves through Wall Street when he announced he was closing his short position on long-term US bonds. Why? Because he believes the high yields on these long term US treasury bonds are simply unsustainable. $10-YR T-NOTE - main 2312(ZNmain)$ $iShares 20+ Year Treasury Bond ETF(TLT)$ 

Bill Ackman is no stranger to making bold moves, but this one's got us all talking. He's essentially saying, "I give up, the yields are too darn high." He might be onto something. When a legendary investor like Ackman throws in the towel on a bearish bet, it's time to pay attention. This isn't just any stock; it's US government debt.

Ackman's move suggests he sees a shift in the bond market. When yields rise, bond prices fall. If those high yields aren't sustainable, it means bond prices could rebound. So, is it time to buy US treasuries? Well, it sure looks like a tempting play right now. Lower bond prices could make for higher returns if Ackman's instincts are right. But, i’ll hold on to my pocket tight first and consider the flip side.

Rising bond yields are often seen as a sign of inflation worries. I can’t be fully bullish on it. If you believe Ackman and think those yields are headed down, you might want to jump in. But if you're inflation-wary and see yields going up, you might want to be cautious.

In the end, Ackman's move is a reminder that even the big shots can change their minds. The bond market can be as fickle as a cat on a hot tin roof, and it's up to you to decide if you want to join Ackman's about-face. Ackman's treasury twist has us wondering if it's time to buy US treasuries. His move suggests that those lofty yields might be on the way down, which could mean potential gains for bond investors. But, don't forget the inflation bogeyman lurking in the shadows. $S&P 500(.SPX)$ 

Modified in.2023-10-27
Time to buy treasury as Ackman close short position?
Bill Ackman, who short on long-term US bonds, tweeted on October 23 that he had closed his position, and said the high yield of long-term US Treasury bonds was unsustainable. ------------ Is it time to buy the US treasury? Are you bullish or bearish on treasuries?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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