A Trillion Dollars Sale 2 Fund Buybacks

Investment Analysis Clubs Macro Economic Trends and Risks
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So this morning, two senior Treasury officials told CNBC that Treasury could use its near $1 trillion General Account (TGA) to help fund the bond buybacks.

Using the TGA would provide the Treasury with considerable firepower to influence long-term bond yields and reassure the market of its ability to influence rates (since last week’s announcement made no mention of how it would fund the purchases)

As CNBC notes, most market participants assumed it would do so by selling short-term bills. The senior Treasury officials did not rule that out.

Gold is up:

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“Hey, markets. If $4B freaked you out last week, how does 250X that sound to you?”

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“Governments defending prices against fundamentals always lose,” Druckenmiller wrote.

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