Elon Musk Says Treasury Bills 'Don't Need Brains'

(Bloomberg) — Elon Musk sees rather a lot to love on the shorter finish of the treasury curve.

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On Thursday, Musk, CEO of Tesla Inc. and proprietor of X, the social media platform previously often known as Twitter, calling short-term T-bills a “no-brainer”.

The feedback got here in response to a tweet from Invoice Ackman of Pershing Sq. Capital Administration.

Late Wednesday, Ackman stated his firm has short-term 30-year Treasury notes, each as a hedge in opposition to the influence of upper rates of interest on shares and in addition as a “standalone” wager. Ackman added Thursday that Pershing makes use of short-term payments to handle money, echoing Berkshire Hathaway Chairman and CEO Warren Buffett.

Berkshire has no plans to cease shopping for Treasury bonds after a downgrade of the US by scores company Fitch this week, Buffett stated Thursday.

Lengthy-term Treasuries are nonetheless on observe for his or her worst week in 2023. Drivers aside from the downgrade embody larger-than-expected auctions this month and the Financial institution of Japan’s transfer to ease its cap on home bond yields.

Musk didn’t instantly reply to a query from Bloomberg asking his opinion on the 10- and 30-year Treasury notes.

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