Bessent mentor Druckenmiller pans bond buybacks

Investor Stanley Druckenmiller, a former mentor to US Treasury Secretary Scott Bessent, has harshly rebuked the government's bond buyback strategy, arguing that governments defending prices against fundamentals always lose. In an opinion piece in The Wall Street Journal, Druckenmiller emphasized that the only variable is how much the government spends before conceding.

ABN Amro's chief economist noted that while Bessent's operations will continue, they lack the "credible promise of overwhelming financial firepower." Barclays analysts also weighed in, stating that while bonds are cheaper than they have been in years due to AI capex, high debt-to-GDP ratios, and stubborn inflation, they are still not cheap enough.

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