U.S. Treasury Secretary Janet Yellen responded to comments from billionaire Stanley Druckenmiller regarding her handling of low-interest rates.
Druckenmiller had criticized Yellen for not taking advantage of low-interest rates, suggesting that she could have issued longer-term bonds at higher yields.
Yellen emphasized that the U.S. Treasury has been lengthening the maturity of its portfolio, and the duration of the portfolio is among the longest. You
Druckenmiller's criticism was centered around the issuance of 2-year bonds at 15 basis points when he believed longer-term bonds could have been issued at higher yields, such as 10-year or 30-year bonds at 70 and 180 basis points, respectively.
It's water under the dam but makes you wonder if they should have altered auction maturity structure when rates were lower.
The Strategic Petroleum Reserves is another "trade" that government has taken and did not jump in to replenish when prices moved into the $60-$70 area.
