J.P. Morgan strategists warned that the market may think that the US Treasury's measures to reduce long-term borrowing costs lack credibility and may push up term premiums and bond yields in the long run. The US Treasury Department said it will at least double the scale of bond repurchases to provide “stronger liquidity support.” The news is driving the long-term decline in US yields. However, J.P. Morgan believes that this move only treats the symptoms rather than the root causes. The size of US Treasury bonds has surpassed 40 trillion US dollars, and the pressure on policymakers to control borrowing costs has increased sharply. The impact far exceeds the federal budget and affects global financing costs.

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