Bessent could tap near $1 trillion Treasury General Account to fund bond buybacks, sources said

The US Treasury may use nearly $1 trillion from its General Account to fund bond buybacks. This was first reported by CNBC, citing unnamed sources. Later reporting from Axios suggested that this intervention could grow. Meanwhile, Bloomberg quoted analysts from Goldman Sachs and Wells Fargo who said that such buybacks are unlikely to cut long-term interest rates. The World Gold Council's Johan Palmberg also expressed skepticism, stating that markets may not respond positively to the buybacks.

The Treasury has not yet confirmed these plans. The Treasury's potential bond market intervention is seen as a significant move. It could signal an economic slowdown, according to Investing.com India. The size of the Treasury General Account is notable, as it holds nearly $1 trillion. This figure was mentioned by CNBC and has not been disputed by other outlets.

The market reaction to potential bond buybacks is uncertain. Analysts from major financial institutions have expressed doubt about the effectiveness of such a move. As of now, the Treasury has not officially announced any plans for bond buybacks.