Bessent says Treasury could deploy $1T from TGA into bond market

U.S. Treasury Secretary Scott Bessent said the Treasury could use about $1 trillion from the Treasury General Account, or TGA, to finance bond purchases, CNBC reported, citing sources. The TGA is the Treasury’s cash account at the Federal Reserve, and if the Treasury reduces the balance to buy government bonds, the funds would be paid to institutions such as banks and funds, increasing cash liquidity across markets. For cryptocurrencies, which are considered liquidity-sensitive risk assets, a decline in the TGA balance could be seen as a favorable backdrop. Separately, the U.S. Treasury recently announced it would at least double its bond-buying pace to as much as $4 billion starting in September, after which BTC has shown a sharp upward trend.