Surround with live template in XHTML: Strange behaviour

I try to surround a JSF/Primefaces tag using the "Surround with <tag></tag> in HTML/JSP" live template. However, when I invoke it, IntelliJ always wraps the whole expression in a CDATA section:

For example, when I select live template and apply it to the following element

the result looks like this

Of course, this makes the whole thing rather useless for XHTML editing. Is this a bug, or is my setup just badly configured? Can the template be tweaked somehow to omit the CDATA?