The U.S. Treasury could use its nearly $1 trillion General Account to fund its recently announced bond buyback plans, according to two senior Treasury officials. Treasury Secretary Scott Bessent announced last week that buybacks of off-the-run securities would double from $2 billion to at least $4 billion, an operation he called a « Treasury Twist ». The Treasury General Account has grown to approximately $950 billion under the Bessent administration, compared with a stated goal of $550 to $600 billion under the Biden administration. The first operation is scheduled for September 9. Using the TGA could influence long-term bond yields and address market skepticism about the Treasury’s limited resources.
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