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Treasuries Recover From Initial Weakness Following Ackman Comments

After an initial move to the downside, treasuries showed a substantial turnaround over the course of the trading session on Monday.

Bond prices climbed well off their lows and firmly into positive territory. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, slid 8.6 basis points to 4.838 percent.

Concerns about the outlook for interest rates contributed to the initial weakness in the bond market, with the ten-year yield briefly peeking above the key 5 percent level.

The subsequent turnaround by treasuries came after Pershing Square’s Bill Ackman said in a post on X, formerly known as Twitter, the hedge fund management company has “covered out bond short.”

“There is too much risk in the world to remain short bonds at current long-term rates,” Ackman added. “The economy is slowing faster than recent data suggests.”

On Friday, the Commerce Department is due to release its report on personal income and spending, which includes readings on inflation said to be preferred by the Federal Reserve.

Traders are also likely to keep an eye on reports on new home sales, durable goods orders, pending home sales and initial jobless claims in the coming days.

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