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BondsMediumUpdated•Originally published 24 August 2026•Updated 24 August 2026•
2 min read

US Treasury Secretary Signals Near-$1T General Account Could Help Fund Expanded Bond Buybacks

Man holding a $1 trillion US Treasury bond in front of the Treasury building and a declining bar chart.

Key Facts

1US Treasury Secretary Bessent indicated the near-$1T Treasury General Account could help fund the expanded long-dated bond buybacks, without specifying how much or when.

In a move reflecting a strategic shift in US fiscal management, Treasury Secretary Scott Bessent has indicated that the Treasury General Account (TGA), whose balance is near $1 trillion, could help fund the expanded buybacks of long-dated government bonds, without saying how much would be used or when. According to reports, the approach aims to shift market expectations regarding Treasury operations, specifically targeting a reduction in long-term borrowing costs by decreasing the available supply of long-term debt in the financial markets.

The remarks follow the Treasury's recent announcement to double the size of its off-the-run securities buybacks on the long end of the curve to at least $4B, up from $2B. Per market data, the 30-year Treasury yield has experienced significant volatility, dropping as low as 5.18% following the initial announcement of the expanded debt buyback plan before retracing, highlighting the market's sensitivity to changes in debt management strategy.

Looking at recent economic data, US Net Long-Term TIC Flows reached $172.7B as of August 17, 2026, exceeding the $151.4B forecast. Investors are now monitoring how this approach will impact yield stability, especially following recent housing sector data such as building permits and pending home sales, which serve as critical indicators of how borrowing costs are influencing the broader economy.