Jin10 reports that Christoph Rieger, head of rates and credit research at Commerzbank, argues that U.S. Treasury bond buyback operations will elevate risk regardless of how they are financed. He notes that cash balances cannot be reduced to prior levels due to political risks and higher government spending.

Rieger also warned that the Treasury is poised to face monthly interest payments exceeding $100 billion. He emphasized that such measures must be accompanied by a coherent and credible long-term fiscal consolidation plan to maintain market stability.

The U.S. Treasury said last week it plans to double the size of its long-dated bond buybacks, and reports on Monday indicated that using the Treasury’s general account could be one funding option for these operations.