US Treasury May Tap $950 Billion Reserve to Calm Markets
Washington may soon buy back more of its own debt. According to CNBC, the U.S. Treasury is considering tapping into its account at the Federal Reserve, which holds about $950 billion, to increase its long-term bond buybacks. This operation could temporarily inject liquidity into the markets.
Key Points
- The U.S. Treasury is exploring the use of its Fed account, filled with about $950 billion, to finance expanded long-term debt buybacks.
- The envelopes per operation for the 10-20 year and 20-30 year segments will double, from $2 billion to at least $4 billion, with the possibility of going higher according to Scott Bessent.
- Drawing cash from the TGA recreates bank reserves and removes duration from the market, two effects similar to quantitative easing.
- Since the Fed halted its balance sheet reduction, the TGA balance has become one of the main liquidity indicators monitored by crypto desks.
The TGA (Treasury General Account) is the main operating account of the federal government with the Fed. Its balance currently hovers around $950 billion, compared to a target of $550 to $600 billion under the previous administration. However, this amount is not fully available: the Treasury keeps a significant cushion to cover its expenses and budgetary surprises.
Officials interviewed by CNBC believe that part of this liquidity could finance the buyback program relaunched in May 2024. No additional amounts or timelines have been communicated yet.
On August 19, the Treasury had already announced the doubling of buybacks dedicated to bonds maturing between 10 and 30 years. From September 9 to November 4, their cap will increase from $2 billion to at least $4 billion in nominal value per operation.
Scott Bessent even indicated that the amounts could be raised depending on market conditions. The Treasury officially presents these operations as a means to support the liquidity of older issues, known as off-the-run.
These securities are less traded than the latest bonds issued. Their accumulation immobilizes part of the balance sheets of financial intermediaries and can amplify tensions when investors flee long maturities.
A Liquidity Support, but Not a True QE
When it spends the money held in the TGA, the Treasury transfers funds to the private sector and increases, all else being equal, bank reserves. A withdrawal of long-term debt can also reduce the duration that investors have to absorb and temporarily relieve yields.
However, the comparison with quantitative easing must be nuanced. In a QE, the Fed creates reserves to buy bonds and increases its balance sheet. Here, the Treasury is using already established cash. And if it later replenishes its TGA through new issuances or tax revenues, the initial injection will be partially or fully recaptured.
The program also remains modest compared to the approximately $32 trillion of negotiable debt. The Treasury initially planned up to $38 billion in liquidity buybacks for the entire quarter, while net issuances remain significantly higher. Its own projections actually anticipated a TGA of $950 billion by the end of September, followed by a possible peak around $1,050 billion by the end of October.
For Bitcoin, the use of the TGA could represent a potentially favorable signal, but not a guarantee of an increase. A sustained decline in the account would temporarily increase available liquidity, but the effect will depend on the scale of the buybacks, their financing, and the evolution of long rates. The upcoming TGA figures and the quarterly refinancing on November 4 will reveal whether Washington is preparing a simple technical adjustment or a real offensive against bond tension.
-- Price
This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.
You may also like

WEEX Exclusive:Bitcoin Peaks Above $81,000 Then Pulls Back | WEEX TradFi Daily (Aug. 26, 2026)

Bitcoin Peaks Above $81,000 Then Pulls Back | WEEX TradFi Daily (Aug. 26, 2026)
Global markets focused on a strong rebound in crypto assets and upcoming U.S. technology earnings. Bitcoin peaked above $81,000 before consolidating at elevated levels, while Ethereum also advanced. Chinese meme tokens and the Layer-2 sector remained active. Technology and semiconductor stocks rebounded ahead of NVIDIA’s earnings, with investors assessing AI infrastructure demand, customer capital expenditure, and earnings conversion. Moderna’s vaccine progress and the decline in crude oil also created significant volatility across related sectors.

Bitcoin payments fade at El Salvador’s Bitcoin Beach

Expansion of US Money Supply Forecasts Long-Term Bitcoin Rise

Mizuho: Current Crypto Rally Quality Surpasses Previous Ones, Driven by Spot and ETFs

Kevin Warsh at Jackson Hole: Why His First Fed Speech Matters So Much for Bitcoin

Bitcoin Spot ETF Sees Net Inflow of $314 Million Yesterday, Continuing 7-Day Net Inflow

Bitcoin Spot ETF Sees $314 Million Net Inflow Yesterday, Continuing 7-Day Net Inflow

Lu Yao Claims Hyperliquid Strength Amid Cryptocurrency Bear Market

Soluna proposes 1 billion shares to fund AI and Bitcoin expansion

Strategic Halts BTC Purchases After Raising $2.065 Billion

825000 people hold at least 1 BTC globally

The Twilight of Native Crypto

BlackRock's IBIT Facilitates Over $5 Billion in Bitcoin Transfers from Private Wallets

Nvidia, Micron to Drive One Third of S&P 500 2026 Earnings Growth

Fear and Greed Index Drops to 65

Sphere 3D faces 2.2 million dollar tariff claim on Bitcoin miners

Gold and Bitcoin ETFs Return to Top Ten Trading Volume

Galaxy Launches Bitcoin, Ethereum, and Solana Collateralized Lending Services

Binance Accused of Bitcoin Liquidations Up to $3000 Lower

El Zonte Restaurant Receives Only One Bitcoin Payment

Traders Increase Bets on Bitcoin Falling to $52,000

Goldman Sachs backs crypto stocks amid Bitcoin breakout

RockawayX Plans to Raise $150 Million to Establish Crypto Hedge Fund

Bitcoin Spot Demand: The Signal That Hadn't Reappeared Since the October 2025 Record

Bitcoin Core Ends Development of HWI for Hardware Wallets

Cofund Maps Over 24 Bitcoin Covenant Use Cases

Kalshi Launches CFTC-Approved Spot Bitcoin Perpetual Futures, Trading Volume Reaches $5.5 Billion in First Two Weeks

Purchase of Cryptocurrency Through Intermediaries Will Be Available to Unqualified Investors

Strategy faces $1.76 billion funding risk, not Bitcoin price drop
WEEX Exclusive:Bitcoin Peaks Above $81,000 Then Pulls Back | WEEX TradFi Daily (Aug. 26, 2026)
Bitcoin Peaks Above $81,000 Then Pulls Back | WEEX TradFi Daily (Aug. 26, 2026)
Global markets focused on a strong rebound in crypto assets and upcoming U.S. technology earnings. Bitcoin peaked above $81,000 before consolidating at elevated levels, while Ethereum also advanced. Chinese meme tokens and the Layer-2 sector remained active. Technology and semiconductor stocks rebounded ahead of NVIDIA’s earnings, with investors assessing AI infrastructure demand, customer capital expenditure, and earnings conversion. Moderna’s vaccine progress and the decline in crude oil also created significant volatility across related sectors.











