Bill Ackman triggers a rebound in risk trades

<p>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.</p><p>"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."</p><p>The irony is that the market has bought risk assets on this call with the S&amp;P 500 rising nearly 30 points from the lows, though still down 5 points on the day.</p><p>US 10-year yields are now flat on the day at 4.90% from a high of 5.02%.</p><p>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.</p>

This article was written by Adam Button at www.forexlive.com.