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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.
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·New York, United States
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Coverage Details
Total News Sources58
Leaning Left4Leaning Right19Center11Last UpdatedBias Distribution56% Right
Bias Distribution
- 56% of the sources lean Right
56% Right
12%
C 32%
R 56%
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