US Treasuries rise as report points to cash-funded bond buybacks
What's new: CNBC reported the Treasury may tap its $935 billion cash account, helping push the 10-year yield down about 4 basis points to 4.69%.
US Treasury bonds gained Monday after CNBC reported the department may use its cash balance at the Federal Reserve to finance buybacks of older, higher-yielding securities. Treasury Secretary Scott Bessent did not endorse additional steps at a press conference, saying the department has not yet bought any bonds and will keep its regular auction schedule until at least the next quarterly refunding in early November. The Treasury General Account stood at $935 billion as of Aug. 20. Morgan Stanley estimated excess cash available for larger buybacks could range from $80 billion to $200 billion. The report extended a rally in Treasuries, with the 10-year yield falling roughly 4 basis points to 4.69%.