Billionaire investor Stanley Druckenmiller has criticized the Treasury Department's strategy to push down long-term bond yields, calling the 30-year Treasury bond "the only fiscal disciplinarian the U.S. has left." Treasury Secretary Scott Bessent recently doubled the government's buybacks of longer-dated Treasuries to as much as $4 billion, a move Druckenmiller says undermines the bond market. However, these buybacks are small compared to the $900 billion in average daily Treasury transactions, and yields on 10-year and 30-year bonds have still risen to near multi-decade highs this week. Bond investors are selling Treasuries due to concerns about rising U.S. debt, which has hit $40 trillion, and the Federal Reserve's insufficient action on inflation. As a result, investors should expect bond yields to remain higher for longer, a trend that could impact borrowing costs and stock market performance.
NVIDIA CorporationDruckenmiller warns buybacks won't tame long-term yields; yields expected higher for longer
Druckenmiller warns buybacks won't tame long-term yields; 30-year yields expected higher for longer
