The Treasury could use its near $1 trillion General Account (TGA) to help fund purchases of government bonds, according to two senior Treasury officials:
Treasury Secretary Scott Bessent has built up the TGA to around $950 billion currently:
The Treasury surprised markets last week by doubling the size of bond buybacks, but the impact on yields was short-lived because of skepticism over the effectiveness of the operation:
Using the TGA could change that perception. The TGA is essentially the government's checking account held at the Federal Reserve:
Bessent stated on CNBC that such operations could be even larger than the new higher minimum:
He also mentioned that he expects progress in the deficit when tariff revenues return:
