Scott Bessent Wants to ‘Put the Fear of God’ Into Bond Vigilantes -- Why This Midterm Ploy Could Backfire on Investors

Scott Bessent Wants to ‘Put the Fear of God’ Into Bond Vigilantes -- Why This Midterm Ploy Could Backfire on Investors

Treasury Secretary Scott Bessent is deploying an arsenal of tools to scare bond vigilantes into submission, but Wall Street's biggest players are already calling his bluff and warning the strategy could make the problem far worse.

Bessent's Former Mentor Druckenmiller Slams Treasury Bond Buyback Plan

"Governments defending prices against fundamentals always lose," Druckenmiller wrote.

Morgan Stanley shares investing tips for navigating 'short-lived gimmicks' in the bond market

Bloomberg/Getty ImagesScott Bessent's bond buyback plan could inadvertently raise long-term borrowing costs.That's according to Morgan Stanley Wealth Management CIO Lisa Shalett.Shalett said investors should add to equal-weight stock indexes and take other defensive steps.Treasury Secretary Scott Bessent has announced bond buyback plans in recent days in an effort to suppress long-term Treasury yields.But in doing so, Bessent might actually be d…

Druckenmiller says Bessent's Treasury bond buying is a mistake

Billionaire investor Stanley Druckenmiller has criticised US Treasury Secretary Scott Bessent’s decision to expand purchases of long-dated government bonds, arguing that policymakers should allow the bond market to determine yields rather than attempting to influence prices, according to a report by Bloomberg. Druckenmiller, who mentored Bessent during the Treasury secretary’s early career as a hedge fund trader alongside George Soros, made the …