Bessent could tap near $1 trillion Treasury General Account to fund bond buybacks, sources said

Live updates

1. 22d ago

   Bessent Weighs Tapping $1 Trillion Treasury Account to Fund Bond Buybacks

   US Treasury Secretary Scott Bessent is considering using the Treasury General Account, which has reached nearly $1 trillion, to finance an expanded program of government bond purchases. This move aims to stabilize the Treasury market, which has been experiencing rising bond yields. Bessent's strategy involves buying back bonds to reduce yields and alleviate pressure on the market. The plan's feasibility and potential impact are being closely watched by investors and analysts.

   Why it matters

   The US Treasury market has been under pressure due to rising bond yields, which have been driven by various economic factors. The 30-year Treasury yield recently reached 5.27%, signaling a structural shift that could make borrowing more expensive for the US government. Bessent's potential use of the Treasury General Account to fund bond buybacks could have significant implications for the market and the broader economy.

   What is confirmed

   • The Treasury General Account has climbed to nearly $1 trillion.
   • Bessent is considering using the Treasury General Account to finance an expanded program of government bond purchases.
   • The 30-year Treasury yield recently reached 5.27%.

   Still unconfirmed

   • Bessent could tap near $1 trillion Treasury General Account to fund bond buybacks

   What to watch next

   • The Treasury's decision on whether to use the Treasury General Account to fund bond buybacks
   • The impact of potential bond buybacks on Treasury yields and the broader market
   • The US government's borrowing costs and their effect on the economy
   Sources used for this update (12)

   1. Forbes — Treasury Is Buying Its Own Bonds. Where Is The Money Coming From?
   2. Yahoo Finance — Mohamed El-Erian says 30-year Treasury yield at 5.27% signals a structural shift that will make America more expensive
   3. Bloomberg.com — Bessent Has No Easy Fix for What’s Really Driving Bond Yields Up
   4. www.newyorker.com — The Humbling of Scott Bessent
   5. CNBC — Bessent could tap near $1 trillion Treasury General Account to fund bond buybacks, sources said
   6. The New Yorker — The Humbling of Scott Bessent
   7. AP News — US futures and oil prices slip with pressure on Treasurys ongoing
   8. consent.yahoo.com — Scott Bessent’s $1 Trillion Bond Market Fight — Treasury Yields Aren’t Buying It
   9. Axios — Treasury's bond market intervention could grow
   10. Barron's — Bessent Appears to Ask Bond Market for Patience After Buyback Surprise
   11. www.tekedia.com — Bessent Could Tap $1 Trillion Cash Account to Control Bond Market
   12. www.cnbc.com — The 10-year bond yield is simply back to normal, says Ed Yardeni
   confidence 85%