State Street senior fixed-income strategist Masahiko Loo said the U.S. Treasury’s potential use of its general account to fund recently announced Treasury buybacks “can buy time but cannot buy fiscal credibility.” CNBC, citing two senior U.S. Treasury officials, reported the Treasury may tap its general account for the increased buybacks. Loo said buyback operations could improve market functioning and temporarily stabilize the yield curve, but would not reduce the underlying debt burden or full

State Street senior fixed-income strategist Masahiko Loo said the U.S. Treasury’s potential use of its general account to fund recently announced Treasury buybacks “can buy time but cannot buy fiscal credibility.” CNBC, citing two senior U.S. Treasury officials, reported the Treasury may tap its general account for the increased buybacks. Loo said buyback operations could improve market functioning and temporarily stabilize the yield curve, but would not reduce the underlying debt burden or fully offset fiscal concerns, rising AI-driven capital demand, or longer-term refinancing risk from heavy reliance on short-term Treasury issuance.