Treasury's Bond Buyback Plan Seen Lacking Credibility by JPMorgan

JPMorgan Chase & Co. strategists are cautioning that the US Treasury's surprise move to curb long-term borrowing costs may ultimately lack credibility in the eyes of markets.

The Treasury announced on Wednesday it would double the size of its bond buybacks, a measure aimed at providing 'greater liquidity support' and sending long-term US yields lower.

JPMorgan's strategists argued that this move only addresses the symptoms rather than the root cause of the problem - the country's 6% deficit in an economy near full employment.