Druckenmiller Warns Bessent's Bond Buybacks Will Fail Without Fiscal Fix
· Business · CNBC, Bloomberg
Billionaire investor Stanley Druckenmiller has publicly questioned US Treasury Secretary Scott Bessent's bond market interventions, arguing in a Wall Street Journal op-ed that buyback efforts will neither durably lower yields nor restore the department's credibility. Bessent has proposed at least doubling Treasury's buybacks of longer-dated debt and intervened in currency markets in late July to support the yen and ease pressure on US debt. The moves have pushed long-dated yields off peaks last seen before the 2008 financial crisis, but Wall Street remains sceptical given $4.7 trillion in debt issued in 2025 and total federal debt now above $40 trillion. Druckenmiller, who mentored Bessent under George Soros, urged him to scrap the August 19 buyback scheme and let the market price debt freely, warning that the 30-year yield clearing at 5.5% would be "an invoice, not a crisis."
Why it matters
Higher US Treasury yields raise borrowing costs worldwide, putting pressure on the rupee, Indian government and corporate bond yields, and equity flows into emerging markets including India, while exposing the limits of Washington firepower without a credible deficit-reduction plan.
Read the original report — CNBC
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