Treasury plans to use General Account to fund enlarged bond buyback program

The Treasury Department is considering utilizing its General Account, which holds a cash stockpile of approximately $950B, to fund an expanded bond buyback program. According to senior Treasury officials reported by CNBC, this strategy involves drawing down cash to repurchase older, higher-yielding securities. While the initiative aims to stabilize market liquidity, some skepticism remains regarding its ability to alleviate long-term yield pressures. The plan focuses on optimizing the portfolio by replacing older debt with newer securities.