Bessent could tap near $1 trillion Treasury General Account to fund bond buybacks: CNBC
Senior Treasury officials told CNBC the near $1 trillion Treasury General Account could help fund expanded bond buybacks.
- Treasury Officials told CNBC on Monday that The Treasury could use its near $1 trillion General Account to help fund planned bond buybacks, providing firepower to manage long-term yields.
- Official foreign institutions now hold about 12% of outstanding securities, down from roughly 40% after the 2008 financial crisis, as debt has surged to $40 trillion.
- After yields reached 19-year highs last week, Bessent announced The Treasury would more than double buybacks, though the impact was short-lived as yields rose back quickly.
- Using the General Account could change market perceptions about The Treasury's firepower, as the account holds almost $1 trillion and provides an alternative to issuing new debt.
- Russian invasion of Ukraine in 2022 and reduced purchases from China and Beijing have complicated Treasury markets, while Western governments face geopolitical risks holding dollar-denominated assets.
35 Articles
35 Articles
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Scott Bessent eying US Treasury cashpile, could use $1 trillion General Account for debt buybacks, says report
US Treasury Secretary Scott Bessent is eyeing the department's $1 trillion General Account (TGA) to fund expanded buybacks of higher-yielding, older securities, CNBC reported citing two senior officials.
The U.S. Treasury Department (U.S.) plans to use its cash reserves to buy back bonds and relax the public debt crisis it is suffering. Specifically, the Executive is studying using the Treasury General Account (TGA), which has around $935 billion in cash. ... Continue reading "U.S. plans to use its cash reserves to buy back bonds and relax the interest on its public debt"
(New York = Yonhap News) Correspondent Lim Soo-jung = The U.S. Treasury Department [is] buying long-term government bonds in its Treasury General Account (TGA), which has a balance approaching $1 trillion (approximately 1,383 trillion won)...
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