Hedge fund manager Bill Ackman said on X, formerly known as Twitter, that his Pershing Square hedge fund covered its bond short after banking on the trade over the past several months as yields surged on persistent inflation.
In August, Ackman announced to the world that his firm was short treasuries "in size".
Bond prices fall as yields rise, so the trade was a big winner for Ackman's firm, although precise details of how much his firm made on the trade are not known.
"There is too much risk in the world to remain short bonds at current long-term rates," Ackman said today after announcing they are covering the bond short.
"The economy is slowing faster than recent data suggests," he added.
In August, Ackman said he was expecting inflation rates to stay persistently around 3% and thought 30-year Treasury yields could hit 5.5% “soon."
Earlier today, the benchmark U.S. 10-year Treasury hit the crucial 5% mark.