Bill Ackman significantly enhanced his reputation with his loud (and correct) call for a drop in bonds. He announced today that he covered it, netting a big profit.
"There is too much risk in the world to remain short bonds at current long-term rates," he wrote. "The economy is slowing faster than recent data suggests."
The irony is that the market has bought risk assets on this call with the S&P 500 rising nearly 30 points from the lows, though still down 5 points on the day.
US 10-year yields are now flat on the day at 4.90% from a high of 5.02%.
It's filtering through to the FX market as well, with the dollar experiencing some selling. Cable is up 30 pips to a session high and eyeing the 1.2200 level.
