![Treasury Secretary Scott Bessent speaks at a press conference Monday (local time). [AP]](https://wimg.heraldcorp.com/news/cms/2026/08/25/rcv.YNA.20260825.PAP20260825019601009_P1.jpg)
The US Treasury Department is considering using the Treasury General Account, which holds a balance approaching $1 trillion, to fund an expanded buyback program for long-term government bonds, sources said. The move aims to stabilize markets by significantly boosting the firepower available for long-term bond purchases, amid a surge in long-term yields to their highest level in 19 years.
CNBC reported Monday (local time), citing two senior Treasury officials, that the TGA could be used to fund the department's recently announced expansion of long-term bond buybacks. The officials confirmed that the TGA is among the funding sources available for such purchases, according to the report.
The TGA is an account held at the Federal Reserve where the federal government deposits funds collected through taxes and other revenue. It functions as a kind of checking account for government expenditures while also serving as a cash buffer for emergencies such as debt-ceiling negotiations.
Since Treasury Secretary Scott Bessent took office, the TGA balance has grown to roughly $950 billion — well above the $550 billion to $600 billion target set under the Joe Biden administration. The Treasury had previously outlined a plan to maintain the TGA balance at around $950 billion through the end of the third quarter.
The officials did not disclose how much of the TGA might be deployed or when any related plans would be announced.
However, they made clear that the TGA is a viable funding source for the buyback program, CNBC said.
The remarks came after the Treasury announced on Aug. 19 that it would at least double the size of its liquidity-support buybacks for long-term bonds — raising the per-operation amount from $2 billion to at least $4 billion — prompting questions about how the program would be funded and at what scale.
In a subsequent interview, Bessent described the initiative as a "Treasury Twist," suggesting the department would fund long-term bond purchases by issuing short-term debt.
Analysts said that tapping TGA funds already accumulated from tax revenue could reduce reliance on short-term debt issuance while expanding the resources available for buybacks, potentially easing market concerns.
The Treasury has discretion over the size of the TGA and said it sets the balance "in a manner consistent with the Treasury's longstanding cash balance policy."
Drawing down the TGA balance would, however, leave the government with less cash on hand if debt-ceiling negotiations were to stall again.
Still, the debt ceiling is not expected to be reached until after next winter, leaving time to replenish the TGA balance beforehand if needed, CNBC said.
The officials' remarks contributed to a decline in US Treasury yields Monday.
The 30-year Treasury yield, which surpassed 5.3 percent last week to reach its highest level since 2007 — a roughly 19-year high — was trading around 5.23 percent in morning hours, down about 4 basis points from the previous session. The 10-year yield also fell roughly 3 to 4 basis points, hovering around 4.7 percent.
mokiya@heraldcorp.com
