10-Year Yield At 5% Triggers Waves Of Treasury Buyers: Bill Ackman, Technical Indicators Hint At Potential Shift
Portfolio Pulse from Piero Cingari
The 10-year Treasury yield surged to 5.02%, its highest level since mid-July 2007, triggering a wave of Treasury purchases and causing yields to retreat to 4.87%. Prominent investor Bill Ackman, who had previously shorted long-term Treasury securities, covered his shorts citing a faster than expected economic slowdown. Technical indicators suggest a potential weakening of seller momentum in the Treasury bond market.
October 23, 2023 | 4:19 pm
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POSITIVE IMPACT
Bill Ackman has covered his short position on the iShares Treasury 20+ Year ETF (TLT), which has fallen approximately 12% since he initiated his bet.
Bill Ackman's decision to cover his short position on TLT indicates his belief that the economy is slowing faster than expected, which could lead to a rise in the price of TLT.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The Relative Strength Index (RSI) for the US Treasury 10 Year Note ETF (UTEN) is showing an upward trend, suggesting a potential weakening of seller momentum.
The upward trend in the RSI for UTEN suggests that seller momentum may be weakening, which could lead to a rise in the price of UTEN.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70