The US Treasury Department is considering deploying nearly $1 trillion to support an expansion of the Treasury bond buyback program.

BlockBeats News, August 24th, a senior official from the U.S. Treasury Department stated that the Treasury may use nearly $1 trillion of Treasury General Account funds to support the recently announced expansion of the U.S. debt buyback program. By tapping into the TGA account, the Treasury Department will have a powerful tool to influence long-term bond yields.

Last week, the U.S. Treasury Department announced externally that it would double the size of the buyback of long-term non-new-issue bonds from $20 billion to at least $40 billion, a move that caught the market by surprise. Treasury Secretary Benson commented that the actual operational size may even exceed this new minimum threshold. However, the Treasury Department did not specify the source of the buyback funding. Most market participants had previously speculated that the Treasury would raise funds by issuing short-term Treasury bills, an option not ruled out by the aforementioned senior Treasury Department official.

According to market data from BIT (bit.com), U.S. Treasury bonds continued to rise, with the 10-year bond yield falling by 4 basis points to 4.70%.