Billionaire investor Stanley Druckenmiller slams Treasury Secretary Scott Bessent’s bond liquidity strategy amid surging long-term yields.
The U.S. Treasury announced plans to double its liquidity-support buybacks for bonds maturing in 10 to 30 years, raising the cap from $2 billion to $4 billion per operation through Nov. 4. The move follows a spike in the 30-year Treasury yield to 5.34%, a nearly two-decade high, prompting short-term relief in yields before a rebound to 5.174% last week.
Critics, including JPMorgan’s James Sullivan, argue the strategy resembles unsustainable debt management. The Treasury’s intervention briefly eased pressure but failed to sustain lower yields, with the 10-year yield settling at 4.64% ahead of pre-announcement levels.
Stanley Druckenmiller, a former colleague of Bessent, published an op-ed this week calling the approach flawed, warning of long-term risks as national debt continues to climb.