#TreasuryEyesTGABuybacks
About TreasuryEyesTGABuybacks
The US Treasury may use its Treasury General Account at the Fed to fund long-bond buybacks. The TGA holds about $935B, but only part may be used; scale and timing remain unclear. Treasury already raised its per-operation cap from $2B to at least $4B. TGA funding could improve demand and release near-term liquidity, but it is not Fed QE and cannot remove rate pressure from deficits, issuance and inflation. Whether buybacks can lower long yields and support gold and BTC depends on the final size.
Veelbesproken
Laatste
TreasuryEyesTGABuybacks Populaire berichten
Vastgezet
Bijna biljoenen dollars aan TGA-invoer, hoe lang kan Basent de Amerikaanse staatsobligaties vasthouden?
Oorspronkelijke titel: The Treasury Twist and the Competition for Capital
Oorspronkelijke auteur: Sage Advisory Services
Vertaling: Peggy
Redactionele noot: Op 19 augustus kondigde het Amerikaanse ministerie van Financiën aan de liquiditeitssteun voor langlopende staatsobligaties uit te breiden door de omvang van de repurchase agreements (repo's) voor nominale couponobligaties met looptijden van 10-20 jaar en 20-30 jaar te verhogen van maximaal 2 miljard dollar tot ten minste 4 miljard doll
Treasury buybacks funded through the TGA could matter less as a headline liquidity event than as a test of market depth. With the account near $935B and the per-operation cap raised from $2B to at least $4B, execution may improve demand at the long end while releasing some near-term liquidity.
The distinction is important: this is not Fed QE, and it cannot erase the pressure from deficits, issuance or inflation. My read is that gold and BTC would respond more sustainably to a credible final scale that lowers long yields than to the announcement alone. Not advice, just analysis.
#TreasuryEyesTGABuybacks
Steno: there's a war chest of already issued dollars parked at the Fed and the Treasury might be about to spend it.
The option on the table is funding the buybacks from the TGA. Those dollars already exist, they've just been sitting idle. Use them to buy back bonds and they flow into the banking system. An idle dollar becomes a live one. Fresh liquidity, without issuing anything new.
Steno's guess is the Treasury deploys $350 to 400 billion of it over the coming years. By his math, that's roughly what the market needs to function properly.
@AndreasSteno and @RosenvoldGeo walked through the full setup on Macro Mondays.
#TreasuryEyesTGABuybacks The U.S. Treasury is reportedly considering whether its Treasury General Account could help finance additional purchases of long-term government bonds. The TGA, effectively the government’s account at the Federal Reserve, contains roughly $935 billion to $950 billion. Treasury has already increased its long-duration buyback limit from $2 billion to at least $4 billion per operation, beginning September 9. The exact scale of any TGA-funded expansion remains unclear.
Using the account could temporarily improve demand for long bonds and release liquidity into the financial system. However, this would not be Federal Reserve quantitative easing, and the Treasury cannot permanently solve high yields by rearranging its cash and debt maturity profile. Persistent deficits, heavy issuance and inflation expectations will continue influencing borrowing costs. Gold and Bitcoin could benefit if the policy weakens the dollar or is interpreted as financial repression. The market should wait for confirmed size and timing before treating the entire TGA balance as available stimulus.
CRYPTO may already be front-running US's next liquidity wave.
Bitcoin has surged from $62k to above $81k in under a week, a 30% rally.
The move began after Treasury doubled long-term bond buybacks to at least $4B per operation.
Since reports of Bessent’s potential $950B TGA firepower, BTC has gained another 4.7%.
If deployed, that cash would leave Treasury’s Fed account and inject liquidity into the financial system.
It could support bond prices, lower yields and push investors toward stocks and crypto.
This is not QE, but markets could experience it like temporary monetary easing.
Treasury would eventually need to refill its cash account, potentially reversing the liquidity boost.
For now, BTC appears to be already pricing in the possibility.
Watch where the cash runs.
Coin Bureau
🚨BREAKING: Bessent to unleash a $1 TRILLION war chest to rescue the US bond market.
That is 250X the Treasury’s new $4 billion for a single long-term bond buyback operation.
According to CNBC, the Treasury could tap its nearly $1T Treasury General Account to fund expanded bond buybacks.
The move could lift bond prices and push long-term yields lower without requiring the Fed to intervene.
This comes after Treasury doubled buybacks from $2B to at least $4B per operation.
But the relief quickly faded and the 30Y yield returned to around 5.25%, showing that far more support may be needed.
Drawing down Treasury cash could also inject major liquidity into markets, potentially benefiting stocks and crypto.
The full $1T has not been committed, but it represents the Treasury’s potential firepower.
The bond market just learned how big Bessent’s bazooka could be.
It's totally messed up!
The U.S. Treasury might tap into that trillion-dollar "rainy day" fund! Bitcoin surges toward $100,000!
Latest news: The U.S. Treasury may use nearly $1 trillion from the TGA account to buy back long-term government bonds. The 10-year Treasury yield immediately dropped 4 basis points to 4.70%. In plain terms — this is a disguised liquidity injection.
With this move, the market has gone crazy👇#BTC80KHoldOrFold #IranSanctionsOilFalls #StrategyBuildsCash