🚨 US TREASURY IS PLANNING TO BUYBACK $1T WORTH OF BONDS Last week, the 30-year Treasury yield hit its highest level since 2007 – 5.23%. Bessent's response: double the size of bond buybacks. From $2 billion to at least $4 billion per operation. It didn't work. Yields rebounded within 24 hours, erasing the entire move. So now there's a bigger question on the table: The Treasury General Account, basically the government's checking account at the Fed, is sitting near $950 billion. Two senior Treasury officials just confirmed to CNBC they could tap it to fund even bigger bond buybacks. Normally the Treasury would fund buybacks by selling more short-term bills. This is different. This is spending down cash they already have. Here's why that matters: Official foreign holdings of US debt have dropped to about 12% of outstanding securities. Down from roughly 40% right after the 2008 crisis. Total debt has ballooned to $40 trillion in that same window. -> fewer foreign buyers -> more debt -> higher yields Bessent is trying to manually hold the line with cash instead of waiting for buyers to show back up. But there's a catch that most headlines are skipping. That $1 trillion account sounds like unlimited firepower. It isn't. Actual usable funds inside it are estimated at somewhere between $100 and $200 billion. Enough to nudge things. Not enough to fundamentally shift the weighted average maturity of the entire federal debt. The first operation under this expanded plan starts September 9th. The real tell will be what happens to yields that week. If yields fall because real buyers come back into the market, that's a genuinely healthy signal. If yields only fall because Treasury is quietly draining its own cash buffer to prop up the number, that's a very different story, and the thing that eventually breaks isn't the bond market. It's confidence in the dollar itself.(Hanzo ㊗️)