US government bond yields fell after reports that the US Treasury may use funds in the Treasury General Account, or TGA, to buy back government bonds. As of 7:36 p.m. Thailand time, the 10-year yield stood at 4.704% and the 30-year yield at 5.235%. CNBC reported, citing a senior Treasury official, that the TGA currently holds about 950 billion dollars in cash, and using funds from this account would give the Treasury the ability to influence long-term bond yields. Last week, the Treasury announced it would increase the size of its long-term bond buybacks from 2 billion dollars to at least 4 billion dollars to boost market liquidity. Treasury Secretary Scott Bessent said the operation could exceed 4 billion dollars. The sources did not specify how much TGA money would be used or when it would be announced, but even a small use of TGA funds, or simply market awareness that the Treasury is ready to use them, could affect bond yields and help ease concerns that the Fed might be asked to step in and help the Treasury buy back government bonds.
Treasury may use TGA funds to buy back bonds, reducing supply and lowering yields.
Treasury may use TGA funds to buy back bonds, reducing supply and lowering yields.
