JPMorgan Team Sees Credibility Risk in Treasury’s Bond Buybacks

JPMorgan strategists said markets may doubt the US Treasury’s surprise effort to curb long-term borrowing costs, which could raise the term premium and lift Treasury yields over time. The risk is credibility-related, implying a gradual upward pressure on longer-end rates rather than an immediate shock.

Analysis

JPMorgan strategists said markets may doubt the US Treasury’s surprise effort to curb long-term borrowing costs, which could raise the term premium and lift Treasury yields over time. The risk is credibility-related, implying a gradual upward pressure on longer-end rates rather than an immediate shock.