This move has been a pretty obvious one all offseason. The Yankees liked what they got out of Garcia last year and he liked being here. He’s cheap enough so bringing him back makes perfect sense. Also it allows them to try to add to their rotation without desperation.
The downside is that Garcia is now 35-years-old and even though his 2011 season was strong, it was his first strong season since 2005. He had a good year last season, but counting on him to put up a low-3.something ERA again is probably a mistake. More realistically he is a solid fourth or fifth starter who will put up a respectable 4.something ERA.