Michael Burry has put long-duration Treasury bonds back in the spotlight, warning that a combination of AI-driven debt expansion, rising inflation volatility, elevated oil prices and mounting stress in the Treasury basis trade could keep upward pressure on long-term yields — a challenging backdrop for long-duration bond ETFs.
In a post on X, the investor urged investors to “watch the long bonds,” arguing that Treasuries are being squeezed by “AI’s debt explosion,” rising inflation volatility and a weakening basis trade, while adding that oil’s climb back toward $100 further complicates the outlook.
