The billionaire hedge fund manager Bill Ackman recently shared on X that he has closed out his short bets against 30-year US Treasuries. He stated, “The world is facing too much risk to maintain short positions in bonds at the current long-term rates.” and pointed out that “The economy is decelerating more rapidly than recent data might suggest.”
Based on the CME Group 30-Day Fed Fund futures prices, the market presently assigns 3.1% probability of a 25bps rate CUT by the Federal Reserve Board in the upcoming week and 96.9% probability that the rate will remain unchanged.
Following Ackman’s announcement, the yields on the 10 and 30-year Treasuries dipped below 5% again.
Crude oil prices tumbled by 2.65% today, reaching $85.75 per barrel, well below September’s prices, which further reinforces the disinflationary trend. ⛽📉
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