Bessent May Use Treasury General Account to Fund Bond Buybacks, Sources Say
Source Summary
Treasury Secretary Bessent is reportedly considering using the Treasury General Account (TGA), which holds nearly $1 trillion, to fund bond buybacks. According to sources, deploying the TGA would give the Treasury significant capacity to influence long-term bond yields.
Why it matters
The TGA's substantial balance would enable the Treasury to directly intervene in bond markets and potentially shape long-term interest rates, a significant policy tool.
What remains uncertain
The proposal remains under consideration and has not been confirmed as official policy.
