Druckenmiller Turns on His Former Pupil Bessent Over Treasury Bond Buyback Plan

TLDR

• Stanley Druckenmiller publicly criticized Treasury Secretary Scott Bessent’s plan to double bond buybacks to $4 billion
• The 30-year Treasury yield hit a 19-year high before the announcement, and yields briefly fell then quickly reversed
• Druckenmiller argues bond buybacks are “price management,” not liquidity management
• He says only deficit reduction will durably lower long-term yields
• Federal Reserve Chair Kevin Warsh faces complications as Treasury intervention distorts market signals

Treasury Secretary Scott Bessent doubled the size of Treasury bond buybacks to $4 billion after the 30-year yield touched its highest level since 2007. The move was intended to bring long-term yields down. It didn’t last.

🇺🇸NEW: Bessent’s mentor SLAMS Treasury bond buyback strategy.

Legendary investor Stanley Druckenmiller, and mentor of Treasury Secretary Scott Bessent, is sharply criticizing Treasury’s push to buy long-dated bonds and suppress long-term yields in a new WSJ op-ed.

Druckenmiller… pic.twitter.com/EHevPFIbr4

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