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Market Chatter: Treasury Could Use General Account to Help Fund Bond Buybacks

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The US Treasury Department could tap its General Account to help fund its planned repurchases of government bonds, CNBC reported Monday, citing two senior Treasury officials.

The use of the near-$1 trillion General Account would give the Treasury sizable firepower to influence long-term bond yields and should come as somewhat of a surprise to investors, who assumed it would fund the operation via short-term bill selling, the report said.

The senior officials didn't rule that method out, however, the report said.

Officials did not say how much could be used or when any decision might be announced, according to the report.

The Treasury Department didn't immediately reply to a request for comment from.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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