Bessent says Treasuries may outperform after buyback criticism

Treasury Secretary Scott Bessent said he spoke with investor Stanley Druckenmiller after Druckenmiller criticized the Treasury Department’s surprise expansion of its buyback program.

“Stan’s a great investor. He changes his mind a lot, and he doesn’t like losing money,” Bessent said Monday on CNBC, referring to Druckenmiller’s criticism in The Wall Street Journal.

Druckenmiller had argued that policymakers should let the bond market do its job. Bessent said his role was to ensure markets focus on fundamentals rather than dictate policy, adding that Treasury could send a signal but could not change the market’s natural equilibrium.

US 10-year yields topped 4.75% earlier Monday, their highest level since January 2025, as higher oil prices increased expectations that the Federal Reserve could raise interest rates. Five-year yields also reached their highest level since early last year.

Bessent said Treasuries were positioned to outperform other major bond markets in August and noted that 10-year yields were roughly flat since President Donald Trump took office. 

Asked about the market’s reaction to the buyback announcement, he replied: “I’ll give you the counterfactual — What if I hadn’t done it?”