Treasury's General Account Primarily Serves to Pay for Govt Obligations -- Market Talk

0522 GMT - The U.S. Treasury's general account (TGA) is normally used to pay for government obligations, and it isn't normally used as an instrument of active policy, Macquarie Group's Thierry Wizman says in a note. Rather, it reflects the government's fiscal disposition, such as larger spending outlays and lower tax receipts reduce the TGA's size, and are fiscally expansionary, the global FX and rates strategist says. "But what [Treasury Secretary Scott] Bessent may propose to do is use the TGA more actively in support of the government's debt management policies, but not necessarily its fiscal policies," Wizman says. The Treasury could use the TGA to buy long-term bonds today, but then increase the size of treasury bill issuance to rebuild the TGA's cash balance, either simultaneously, or later, he says. (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 26, 2026 01:22 ET (05:22 GMT)