Bill Ackman reveals his next big short: 30-year Treasurys

Bill Ackman says he's betting against 30-year Treasurys as a hedge against stubbornly high inflation

Bill Ackman revealed he's betting against US Treasurys as a hedge against stubbornly high inflation. on Wednesday, saying he's"short in size" on 30-year Treasurys as a buffer against the impact of higher interest rates on stocks, and as a"high probability standalone bet."

Bond prices tend to have an inverse relationship to interest rates. When interest rates go up, bonds usually fall. Traders may bet against bonds if they think their prices will drop. "We implement these hedges by purchasing options rather than shorting bonds outright. This makes it easier to sleep at night as it makes your downside finite. Our 'sleep-at-night test' is a critical risk management tool."

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