Druckenmiller Warns Bessent Bond Buys Could Be a Mistake

Stanley Druckenmiller, the billionaire investor who mentored U.S. Treasury Secretary Scott Bessent in his early hedge fund career, said Bessent’s planned increase in long dated Treasury purchases could be a mistake. Bloomberg reported the comments on August 25, 2026.

Bessent has pledged to raise the Treasury’s purchases of long dated bonds, a step widely viewed as aimed at pushing down yields in the United States’ most important debt market, Bloomberg reported.

Druckenmiller suggested his former pupil is making an error by moving deeper into the bond market, Bloomberg reported.

Separately, Cholamandalam Investment and Finance Co., described by Bloomberg as one of India’s biggest shadow lenders, plans to raise as much as 20 billion rupees, or $209 million, through the issuance of perpetual bonds, according to people familiar with the matter.

The Bloomberg report said perpetual bonds typically have no maturity date. For Cholamandalam’s notes, the issuer can call them after 10 years, the people familiar with the terms said, asking not to be identified because the terms are not public.