United States Treasury or nearly $1 trillion in financial support to expand the United States debt buy-back scheme

ACCORDING TO TWO SENIOR TREASURY OFFICIALS, THE UNITED STATES TREASURY DEPARTMENT MAY OR WILL USE FUNDS FROM THE TREASURY GENERAL ACCOUNT (TGA), WHICH IS CLOSE TO $1 TRILLION, TO PROVIDE FINANCIAL SUPPORT FOR THE RECENTLY ANNOUNCED EXPANDED UNITED STATES DEBT BUY-BACK PROGRAMME. THE USE OF TGA ACCOUNTS WILL GIVE THE MINISTRY OF FINANCE A POWERFUL TOOL TO INFLUENCE THE RATE OF RETURN ON LONG-TERM BONDS. LAST WEEK, THE MINISTRY OF FINANCE ANNOUNCED THAT IT WOULD DOUBLE THE SCALE OF REPURCHASES OF LONG-TERM NON-NEWLY ISSUED BONDS, FROM $2 BILLION TO AT LEAST $4 BILLION, A SURPRISE TO THE MARKET. ACCORDING TO FINANCE MINISTER SCOTT BESENT, THE OPERATIONAL SCALE MAY EVEN BE ABOVE THIS NEW THRESHOLD. HOWEVER, THE MINISTRY OF FINANCE DID NOT INDICATE THE SOURCE OF THE REPURCHASE FUNDS. MOST MARKET PARTICIPANTS HAD PREVIOUSLY PREDICTED THAT THE MINISTRY OF FINANCE WOULD RAISE FUNDS BY ISSUING SHORT-TERM TREASURY BILLS, AN OPTION THAT HAD NOT BEEN RULED OUT BY SENIOR OFFICIALS OF THE MINISTRY. "THE NEW WAVE"