Treasury may tap $950 billion cash pile for bigger bond buybacks

The US Treasury may use its roughly $950 billion Treasury General Account to finance expanded buybacks of older long-term bonds, giving Secretary Scott Bessent more room to press down borrowing costs. The option emerged days after Treasury doubled planned buybacks of off-the-run long-dated securities to at least $4 billion, a move that initially lifted bond prices before yields climbed again. Bessent has described the effort as a "Treasury Twist," suggesting purchases of longer-dated debt could be paired with short-term issuance. Officials did not say how much of the cash balance might be used or when. The account, held at the Federal Reserve, is far above the $550 billion to $600 billion level targeted under Janet Yellen.