Stanley Druckenmiller, Scott Bessent’s mentor at the Soros Fund in the 1990s, published an AI-assisted opinion piece in the Wall Street Journal criticizing the U.S. Treasury’s decision to double its long-dated bond buybacks from $2 billion to $4 billion per operation, after the 30-year Treasury yield reached a 19-year high. Druckenmiller described this move as price management rather than liquidity management, arguing that it muffles a market signal reflecting the unsustainability of U.S. fiscal policy. The two former associates now find themselves on opposite sides of the debate: Bessent at Treasury, Druckenmiller close to Kevin Warsh at the Federal Reserve, both serving a president whose economic worldview differs from what they were taught. According to the New York Fed, hedge funds held $2.4 trillion in long Treasury exposure as of September 2025, with basis trade volume approaching $830 billion.
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