According to two senior Treasury officials, the U.S. Treasury may tap into nearly $1 trillion from its General Account (TGA) to fund the recently announced expansion of its Treasury bond buyback program. Utilizing the TGA account will 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-term, non-newly issued bonds from $2 billion to at least $4 billion, a move that surprised the market. Treasury Secretary Scott Basset 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.