US Treasury yields rose modestly in Asian trade on Tuesday after reports the
Treasury is considering using funds from its Treasury General Account to finance
Treasury repurchase operations. ING Americas head of research Padhraic Garvey
said the financing source itself would not materially affect long-term yields;
only an expansion in the scale of long-dated Treasury repos would likely move
long yields, and whether repo funding comes from issuing T‑bills or drawing down
the general account should not change that outcome.
