Treasury's Bond Buybacks Spark Credibility Concerns Amid Rising Debt

The US Treasury announced on Wednesday that it would at least double the size of its bond buybacks to provide greater liquidity support and reduce long-term borrowing costs.

However, JPMorgan Chase strategists warned that this move may be seen as lacking credibility by markets, potentially pushing up term premiums and yields over time.

The US national debt has topped $40 trillion, raising the stakes for policymakers trying to keep borrowing costs in check. The Treasury's decision follows a series of recent moves aimed at addressing rising long-term yields, which have recently hit their highest since 2001.