Former mentor predicts failure for Treasury secretary's bond yield suppression

Stanley Druckenmiller, who mentored Scott Bessent, has publicly warned that the Treasury secretary's efforts to lower US borrowing costs through expanded bond buybacks will fail. In a Wall Street Journal op-ed, Druckenmiller argued that the government should let the bond market dictate yields and focus on reducing the budget deficit. Bessent recently doubled the maximum size of Treasury buyback operations, but the market quickly reversed the initial drop in yields.