Legendary investor Stanley Druckenmiller published an op-ed in the Financial Times publicly breaking with his former protégé, Treasury Secretary Scott Bessent, calling the government’s bond buyback strategy a dangerous exercise in fiscal denial. He predicts the 10-year Treasury yield, currently around 4.7%, will reach 5.50%. With federal debt exceeding $40 trillion and a deficit near 6% of GDP at full employment, Druckenmiller argues the government should address its spending problem rather than artificially suppressing long-term yields. Net interest payments on federal debt are projected to exceed $1.1 trillion in fiscal 2026, a figure that now surpasses the entire defense budget.
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