JPMorgan: Treasury Bond Purchases Could Backfire

JPMorgan has warned that the U.S. Treasury Department's surprise move to lower long-term borrowing costs could worsen the situation. The department, led by Treasury Secretary Scott Bessent, announced yesterday that it would at least double the size of its bond buyback program. The announcement initially pushed down long-term Treasury yields. However, according to JPMorgan, this step treats the symptoms of America's growing debt burden, not the root cause. The bank notes that without genuine fiscal consolidation, investor confidence could be shaken, potentially driving borrowing costs even higher. This warning comes at a time when U.S. national debt has surpassed $40 trillion and Washington continues to sell more securities. Bloomberg's Markets Live strategist Skylar Montgomery Koning discussed the matter with Stephen Carroll and James Woolcock. This is not investment advice.

📊 TLT — Piyasa Yorumu

▼ down · 60%

JPMorgan's warning suggests that bond purchases could backfire, potentially putting pressure on TLT. An RSI above 70 indicates overbought conditions, increasing the likelihood of a short-term correction. The MACD is positive but approaching its signal line, suggesting momentum may be weakening. The price is above the SMA20 and SMA50, but there is a risk of a pullback from these levels. Considering both the news flow and technical indicators, a downward move can be expected in the short term.

RSI 14

70.4

MACD

0.24

24h Δ

1.36%

📊 JPM — Piyasa Yorumu

▼ down · 60%

The news that JPMorgan has indicated Treasury purchases could backfire may dampen risk appetite in the market. Technical indicators also point to weakness: RSI at 36.7 is near oversold territory, MACD is below the signal line, and the price is below both the 20-day and 50-day moving averages. A 1.7% decline over the last 24 hours suggests negative short-term momentum. Therefore, the stock is likely to continue its downward trend over the next 1-3 days, although a technical rebound could occur as it approaches oversold conditions.

RSI 14

36.7

MACD

-1.47

24h Δ

-1.69%

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