Billionaire investor Bill Ackman said he is betting against 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, the founder of Pershing Square Capital Management, also said he is "short in size" on the 30-year U.S. Treasurys because it's "a high probability standalone bet." "We implement these hedges by purchasing options rather than shorting bonds outright," Ackman said said late Wednesday. Ackman argued that if U.S. inflation is 3% in the long term instead of 2%, 30-year Treasury yields could hit 5.5% "and it can happen soon." U.S. inflation stood at 3% in June, while yields on 30-year Treasury hit 4.2% — its highest since early November.

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Persons: Bill Ackman, Olivia Tournay Flatto, Ackman, Fitch Organizations: Armory, Billionaire, Pershing, Capital Management, AAA, White, Treasury Locations: New York City