TGA Could Turn A Small Buyback Into A Market Mover
The Treasury General Account (TGA) is Treasury's cash balance held at the Federal Reserve. Its balance is the net of cash inflows like tax receipts and outflows to pay the government's bills. On Monday, we learned that Treasury Secretary Scott Bessent may fund the expanded Treasury bond buyback program by tapping the TGA. Currently, as the graph below shows, the TGA balance is just shy of $1 trillion. The balance has crossed $800 billion several times since 2020, but every prior instance had a trigger. The 2020 spike to $1.8 trillion was pandemic emergency funding, a one-time buildup that…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.