Ackman Takes Big Short Position on 30-Year Treasuries

Billionaire investor William Ackman has announced that his hedge fund, Pershing Square Capital Management, is shorting U.S. 30-year Treasuries as a hedge against the impact of higher long-term rates on stocks and as a standalone bet. Ackman argues that if long-term inflation reaches 3% instead of 2%, the 30-year Treasury yield could rise to 5.5%. He believes that higher defense costs, energy transition, and increased bargaining power of workers all point towards higher inflation. Ackman implements these hedges by purchasing options rather than shorting bonds outright.