"Bill Ackman Predicts 5.5% Yield Surge as He Shorts 30-Year Treasury Bills"

Billionaire investor Bill Ackman is shorting 30-year U.S. Treasurys as a hedge against the impact of long-term rates on stocks in a world with persistent 3% inflation. Ackman believes this to be one of the few macro investments that still offer reasonably asymmetric payoffs. He argues that if U.S. inflation remains at 3% in the long term, 30-year Treasury yields could hit 5.5% soon. Ackman points to factors such as de-globalization, higher defense costs, the energy transition, growing entitlements, and political divisiveness as reasons for higher long-term inflation. He also anticipates the ending of yield curve control in Japan to increase the appeal of Japanese government bonds over U.S. Treasurys.