Treasury Could Use Near $1 Trillion General Account to Fund Bond Buybacks
The U.S. Treasury may use its near-$1 trillion General Account (TGA) to fund recent bond buyback operations, according to senior officials. This move could provide the necessary financial firepower for these purchases and influence long-term bond yields more effectively than previously anticipated. Treasury Secretary Scott Bessent announced a doubling of off-the-run Treasury bond repurchases last week from $2 billion to at least $4 billion per month. However, initial market optimism faded due to uncertainty about funding sources. Most analysts assumed the purchases would be financed by selling short-term bills—a strategy known as a
Topics: bond buybacks market impact Scott Bessent Treasury General Account