U.S. Treasury Considers Using $950 Billion Account for Bond Buybacks
The U.S. Treasury is considering using its General Account, which holds nearly $950 billion in cash at the Federal Reserve, to fund a bond buyback program aimed at improving liquidity and influencing long-term yields. The account currently exceeds levels previously targeted by the Biden administration and was built up under Treasury Secretary Scott Bessent through existing tax collections. Markets had initially expected the purchases would be funded via new short-term bill sales—a strategy dubbed a 'Treasury Twist'—but officials confirmed that drawing from the TGA is also an option. This move could address concerns about the scale of the buyback program, which has seen bond prices retreat and yields rise since its announcement. The enlarged operations are set to run through November 2026 with potential for even larger purchases depending on market conditions.
Tickers: $UST
Topics: bond_buybacks federal_budget TGA_usage