Billionaire investor Stanley Druckenmiller has publicly condemned the US Treasury’s plan to double the size of its long-dated bond buybacks, calling them « price management » rather than liquidity management. The 30-year Treasury yield had hit a 19-year high before the August 19 announcement that raised buybacks from $2 billion to at least $4 billion per operation, running from September 9 through November 4. Scott Bessent, a former protégé of Druckenmiller at Soros Fund Management, defended the measure as a routine extension of an existing program. For Druckenmiller, the intervention signals that the government has a pain threshold for long-term rates, while the federal deficit sits at roughly 6% of GDP and national debt exceeds $40 trillion.
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