JPMorgan Chase likened the U.S. Treasury's over $4 billion bond buyback program to "paying off a mortgage with a credit card," after the national debt reached $40 trillion.
U.S. Treasury Secretary Scott Bessent unveiled the plan late last week, aiming to improve market conditions by repurchasing higher-yielding long-term bonds and issuing short-term bonds. James Sullivan, co-head of global fundamental research at JPMorgan Chase, stated on CNBC on August 21 that this move is akin to "paying off a mortgage with a credit card," which can only temporarily alleviate the problem, and eventually, the maturity mismatch will become more pronounced. The Treasury will at least double the size of liquidity support repurchases for 10- to 30-year bonds, totaling over $4 billion, between September 9 and November 4, 2026.
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