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Druckenmiller calls Bessent’s long-dated Treasury bond buying a mistake
Druckenmiller argued that Treasury involvement could mute a key signal from long-term yields, which have climbed as US government debt surpassed $40tn.
Billionaire investor Stanley Druckenmiller criticized US Treasury Secretary Scott Bessent’s plan to expand purchases of longer-dated US government bonds, according to a report by Bloomberg. Druckenmiller said policymakers should let the bond market determine yields rather than try to influence prices.
He made the remarks in a Wall Street Journal opinion article as the Treasury prepares to increase its buying of longer-maturity debt. The Treasury has said the expanded buybacks are intended to improve liquidity in the long end of the government bond market, and could also help lower borrowing costs for businesses and households if the purchases put downward pressure on yields.
Druckenmiller questioned the rationale for intervening, arguing that bond prices convey information about investors’ views of the government’s fiscal position. He said rising yields should not be automatically treated as a problem to correct, because efforts to suppress the signal could shift financial pressure elsewhere.
The timing comes as 30-year Treasury yields have climbed to levels not seen in nearly two decades, reflecting investors demanding greater compensation for holding longer-term debt as federal borrowing increases. The broader debt load has pushed US government debt above $40tn, intensifying pressure to contain financing costs, even as some investors and strategists view the Treasury’s growing market role as a departure from its traditional function.