According to two senior Treasury officials, the U.S. Treasury may tap into nearly $1 trillion from the Treasury General Account (TGA) to support the recently announced expansion of the U.S. bond buyback program. Utilizing the TGA account would provide the Treasury with a powerful tool to influence long-term bond yields. Last week, the Treasury announced it would double the buyback scale for long-dated non-newly issued bonds from $2 billion to at least $4 billion, a move that surprised the market. Treasury Secretary Scott Bessenet indicated that the actual operational scale could even exceed this new minimum threshold. However, the Treasury did not specify the source of the buyback funds. Most market participants had previously anticipated that the Treasury would raise funds by issuing short-term Treasury bills, and the aforementioned Treasury officials did not rule out that option.