{"id":66569,"date":"2023-09-28T19:18:59","date_gmt":"2023-09-28T23:18:59","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/bill-ackman-says-treasury-yields-are-going-higher-in-a-hurry-and-that-investors-should-shun-u-s-government-debt\/"},"modified":"2023-09-28T19:19:01","modified_gmt":"2023-09-28T23:19:01","slug":"bill-ackman-says-treasury-yields-are-going-higher-in-a-hurry-and-that-investors-should-shun-u-s-government-debt","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=66569","title":{"rendered":"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt"},"content":{"rendered":"
\n

Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. <\/p>\n

In lieu of taking a victory lap, Ackman opted to press his case during an appearance Thursday at CNBC\u2019s Delivering Alpha conference, where he discussed his reasoning behind the bet and his view that yields have further to climb \u2014 while insisting the trade hadn\u2019t been as big a slam dunk as it might seem. <\/p>\n

\n

The yield on the 30-year Treasury bond
\n BX:TMUBMUSD30Y
\n has risen sharply since Ackman first mentioned his firm\u2019s position publicly during a post on X, the social-media platform formerly known as Twitter, in early August, as a summertime selloff accelerated. <\/p>\n

According to Dow Jones Market Data, the yield on the long bond has risen 87.5 basis points since the start of the third quarter on July 1, leaving it on track for its biggest quarterly increase since 1987 when trading for the quarter ends on Friday. Bond yields move inversely to prices, so rising yields mean prices are falling. It stood at 4.707% in recent trade. <\/p>\n

The hedge-fund manager, whose Pershing Square Capital Management just had its \u201cbest five years in the history of the firm,\u201d said he expects structurally higher inflation and the U.S. government\u2019s need to issue more bonds to fund a yawning budget deficit to keep the pressure on yields. <\/p>\n

\u201cOur view is, you\u2019re not being paid enough to enter into a 30-year contract with the U.S. government at a fixed price,\u201d Ackman said. <\/p>\n

This could potentially drive the 10-year Treasury yield
\n BX:TMUBMUSD10Y
\n above the 5% level in the next few weeks, Ackman said. <\/p>\n

\u201cIn relative short term, there are reasons why rates can move a lot,\u201d Ackman said. \u201cWe\u2019re going to have a government shutdown, and we\u2019re going to have a data shutdown. We have the worst technical environment in our lifetime in terms of supply of bonds and buyers of bonds.\u201d<\/p>\n

As for inflation, he said he expected \u201cstructural inflation to be 3% to 4% for the long term,\u201d which is why the Trump administration should have seized the opportunity to lock in low rates by issuing more long-dated debt, Ackman half-joked. <\/p>\n

\u201c[Former Treasury Secretary] Steve Mnuchin should have issued a lot of 30-year, 50-year, 100-year paper at those rock-bottom rates,\u201d Ackman said. <\/p>\n

Rising bond yields have created problems for stocks, sending the S&P 500
\n SPX
\n lower in September. The index is on track to book its fourth straight weekly decline on Friday. <\/p>\n

While his interviewer, CNBC\u2019s Scott Wapner, congratulated the hedge-fund chief on his timely bet \u2014 \u201cyou nailed it,\u201d Wapner said at one point \u2014 Ackman insisted that the bet hadn\u2019t paid off as handsomely as one might expect, since the firm has been in the trade for 18 months. <\/p>\n

\u201cIf we had nailed it we would have made more,\u201d he said, adding that the firm made more off a bet on short-term rates. <\/p>\n<\/p><\/div>\n<\/div>\n

Read the full article here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a victory lap, Ackman opted to press his case during an appearance Thursday at CNBC\u2019s Delivering Alpha conference, where he discussed his reasoning behind the bet and […]<\/p>\n","protected":false},"author":1,"featured_media":66570,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-66569","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"\nBill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt | iFintechWorld<\/title>\n<meta name=\"description\" content=\"Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/ifintechworld.com\/?p=66569\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt | iFintechWorld\" \/>\n<meta property=\"og:description\" content=\"Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a\" \/>\n<meta property=\"og:url\" content=\"https:\/\/ifintechworld.com\/?p=66569\" \/>\n<meta property=\"og:site_name\" content=\"iFintechWorld\" \/>\n<meta property=\"article:published_time\" content=\"2023-09-28T23:18:59+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2023-09-28T23:19:01+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/1695943140_social.jpeg\" \/>\n\t<meta property=\"og:image:width\" content=\"1280\" \/>\n\t<meta property=\"og:image:height\" content=\"640\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"News Room\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"News Room\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/ifintechworld.com\/?p=66569#article\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=66569\"},\"author\":{\"name\":\"News Room\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\"},\"headline\":\"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt\",\"datePublished\":\"2023-09-28T23:18:59+00:00\",\"dateModified\":\"2023-09-28T23:19:01+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=66569\"},\"wordCount\":519,\"commentCount\":0,\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"keywords\":[\"Featured\"],\"articleSection\":[\"Markets\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/ifintechworld.com\/?p=66569#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/ifintechworld.com\/?p=66569\",\"url\":\"https:\/\/ifintechworld.com\/?p=66569\",\"name\":\"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt | iFintechWorld\",\"isPartOf\":{\"@id\":\"https:\/\/ifintechworld.com\/#website\"},\"datePublished\":\"2023-09-28T23:18:59+00:00\",\"dateModified\":\"2023-09-28T23:19:01+00:00\",\"description\":\"Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a\",\"breadcrumb\":{\"@id\":\"https:\/\/ifintechworld.com\/?p=66569#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/ifintechworld.com\/?p=66569\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/ifintechworld.com\/?p=66569#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/ifintechworld.com\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/ifintechworld.com\/#website\",\"url\":\"https:\/\/ifintechworld.com\/\",\"name\":\"Repay Down\",\"description\":\"Latest Personal Finance News, Tips and Updates\",\"publisher\":{\"@id\":\"https:\/\/ifintechworld.com\/#organization\"},\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/ifintechworld.com\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\/\/ifintechworld.com\/#organization\",\"name\":\"Repay Down\",\"url\":\"https:\/\/ifintechworld.com\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png\",\"width\":558,\"height\":90,\"caption\":\"Repay Down\"},\"image\":{\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/\"}},{\"@type\":\"Person\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61\",\"name\":\"News Room\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"contentUrl\":\"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png\",\"caption\":\"News Room\"},\"sameAs\":[\"https:\/\/ifintechworld.com\"],\"url\":\"https:\/\/ifintechworld.com\/?author=1\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt | iFintechWorld","description":"Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/ifintechworld.com\/?p=66569","og_locale":"en_US","og_type":"article","og_title":"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt | iFintechWorld","og_description":"Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a","og_url":"https:\/\/ifintechworld.com\/?p=66569","og_site_name":"iFintechWorld","article_published_time":"2023-09-28T23:18:59+00:00","article_modified_time":"2023-09-28T23:19:01+00:00","og_image":[{"width":1280,"height":640,"url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/09\/1695943140_social.jpeg","type":"image\/jpeg"}],"author":"News Room","twitter_card":"summary_large_image","twitter_misc":{"Written by":"News Room","Est. reading time":"2 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/ifintechworld.com\/?p=66569#article","isPartOf":{"@id":"https:\/\/ifintechworld.com\/?p=66569"},"author":{"name":"News Room","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61"},"headline":"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt","datePublished":"2023-09-28T23:18:59+00:00","dateModified":"2023-09-28T23:19:01+00:00","mainEntityOfPage":{"@id":"https:\/\/ifintechworld.com\/?p=66569"},"wordCount":519,"commentCount":0,"publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"keywords":["Featured"],"articleSection":["Markets"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/ifintechworld.com\/?p=66569#respond"]}]},{"@type":"WebPage","@id":"https:\/\/ifintechworld.com\/?p=66569","url":"https:\/\/ifintechworld.com\/?p=66569","name":"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt | iFintechWorld","isPartOf":{"@id":"https:\/\/ifintechworld.com\/#website"},"datePublished":"2023-09-28T23:18:59+00:00","dateModified":"2023-09-28T23:19:01+00:00","description":"Bill Ackman has had a good summer, with his bet on 30-year Treasury bonds paying off in dramatic fashion over the past few weeks. In lieu of taking a","breadcrumb":{"@id":"https:\/\/ifintechworld.com\/?p=66569#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/ifintechworld.com\/?p=66569"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/ifintechworld.com\/?p=66569#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/ifintechworld.com\/"},{"@type":"ListItem","position":2,"name":"Bill Ackman says Treasury yields are going higher in a hurry, and that investors should shun U.S. government debt"}]},{"@type":"WebSite","@id":"https:\/\/ifintechworld.com\/#website","url":"https:\/\/ifintechworld.com\/","name":"Repay Down","description":"Latest Personal Finance News, Tips and Updates","publisher":{"@id":"https:\/\/ifintechworld.com\/#organization"},"potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/ifintechworld.com\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/ifintechworld.com\/#organization","name":"Repay Down","url":"https:\/\/ifintechworld.com\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/rep-logo-dark.png","width":558,"height":90,"caption":"Repay Down"},"image":{"@id":"https:\/\/ifintechworld.com\/#\/schema\/logo\/image\/"}},{"@type":"Person","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/6224724fd4116361255b179dc5c70b61","name":"News Room","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/ifintechworld.com\/#\/schema\/person\/image\/","url":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","contentUrl":"https:\/\/ifintechworld.com\/wp-content\/uploads\/2023\/04\/avatar_user_1_1682606986-96x96.png","caption":"News Room"},"sameAs":["https:\/\/ifintechworld.com"],"url":"https:\/\/ifintechworld.com\/?author=1"}]}},"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/66569","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=66569"}],"version-history":[{"count":1,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/66569\/revisions"}],"predecessor-version":[{"id":66571,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/posts\/66569\/revisions\/66571"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=\/wp\/v2\/media\/66570"}],"wp:attachment":[{"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=66569"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=66569"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ifintechworld.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=66569"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}