Hedge Fund Guru Bill Ackman Bets Against US Treasuries, Expects 30-Year Yields To Surge To 5.5%
Portfolio Pulse from Piero Cingari
Bill Ackman, CEO of Pershing Square Capital Management, is shorting long-term U.S. Treasuries, predicting that 30-year yields could rise to 5.5%. He attributes this to structural changes in the economy that could trigger higher long-term inflation, the U.S. government's $32-trillion debt, and large deficits. He also mentions Japan's exit from yield curve control and concerns about US governance as potential factors. Several ETFs allow investors to take short positions on U.S. Treasury securities, including TMW, TBF, TTT, TBT, TBX, and TYO.
August 04, 2023 | 1:15 pm
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POSITIVE IMPACT
TBF, an ETF that seeks to provide the inverse performance of the ICE U.S. Treasury 20+ Year Bond Index, could be impacted by Ackman's prediction of rising 30-year yields.
If 30-year yields rise as Ackman predicts, TBF, which shorts the ICE U.S. Treasury 20+ Year Bond Index, could see increased interest and potential gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TBT, an ETF that aims to deliver twice the inverse daily performance of the ICE U.S. Treasury 20+ Year Bond Index, could be impacted by Ackman's prediction of rising 30-year yields.
If 30-year yields rise as Ackman predicts, TBT, which shorts the ICE U.S. Treasury 20+ Year Bond Index, could see increased interest and potential gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TBX, an ETF that provides the opposite daily performance of the ICE U.S. Treasury 7-10 Year Bond Index, could be impacted by Ackman's prediction of rising 30-year yields.
If 30-year yields rise as Ackman predicts, TBX, which shorts the ICE U.S. Treasury 7-10 Year Bond Index, could see increased interest and potential gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TMW, an ETF that provides three times the inverse daily performance of the NYSE 20+ Year Treasury Index, could be impacted by Ackman's prediction of rising 30-year yields.
If 30-year yields rise as Ackman predicts, TMW, which shorts the NYSE 20+ Year Treasury Index, could see increased interest and potential gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TTT, an ETF that offers three times the daily inverse exposure to the performance of the ICE U.S. Treasury 20+ Year Bond Index, could be impacted by Ackman's prediction of rising 30-year yields.
If 30-year yields rise as Ackman predicts, TTT, which shorts the ICE U.S. Treasury 20+ Year Bond Index, could see increased interest and potential gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
TYO, an ETF designed to achieve three times the inverse daily return of the NYSE 10-Year U.S. Treasury Note Futures Index, could be impacted by Ackman's prediction of rising 30-year yields.
If 30-year yields rise as Ackman predicts, TYO, which shorts the NYSE 10-Year U.S. Treasury Note Futures Index, could see increased interest and potential gains.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80