Bessent arms Treasury with $950B cash reserve as bond yields surge

The Treasury may tap its roughly $950 billion General Account to help fund larger purchases of U.S. government bonds as long-term yields climb again.

Two senior Treasury officials reportedly said the cash is available. Treasury last week doubled planned buybacks of older, off-the-run long-dated securities from $2 billion to at least $4 billion per operation. Treasury Secretary Scott Bessent has said those purchases could go above the new minimum.

Treasury did not say how it would pay for the larger buys. Most traders expected more short-term bill sales, and officials have not ruled that out. Scott called the plan a “Treasury Twist” in an interview last week, meaning longer-term Treasurys would be bought while shorter-term debt could be issued.

Treasury weighs its $950B cash account

The Treasury General Account, or TGA, is the government’s main cash account at the Federal Reserve. It already holds tax collections. Using it could let Treasury pay for part of the buybacks with cash already on hand rather than relying only on new bill issuance.

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