Key facts
- The U.S. Treasury will maintain its regular debt auction schedule.
- Treasury Secretary Scott Bessent confirmed plans to double quarterly buybacks of 10- to 30-year securities.
- Billionaire investor Stanley Druckenmiller criticized the buyback plan as a "mistake" that damages market credibility.
- Druckenmiller argued that deficit reduction, not market intervention, is the key to lowering long-term yields.
- The U.S. national debt has surpassed $40 trillion, with the annual deficit projected to reach $2 trillion.
U.S. Treasury Secretary Scott Bessent confirmed the department will maintain its regular debt auction schedule, including for long-dated bonds, despite plans to double quarterly buybacks of 10- to 30-year securities starting September 10. Billionaire investor Stanley Druckenmiller criticized this move, stating in an opinion piece that the Treasury is eroding market credibility and engaging in 'price management' rather than addressing the primary deficit, which he argued is the only way to durably lower long-term yields. Druckenmiller suggested that intervening in the long bond yield risks larger buybacks and damages the Treasury market's reputation for reliability. The Treasury has not yet purchased any bonds under the enlarged buyback program, which aims to support liquidity in thinly traded market areas. The U.S. national debt has surpassed $40 trillion, with the annual deficit projected to reach $2 trillion this year. Bessent could potentially increase his bond-buying firepower using the Treasury's nearly $1 trillion General Account held at the Federal Reserve.