JPMorgan strategists warned on Aug. 20 that the market may view the U.S. Treasury’s unexpected effort to reduce long-term financing costs as lacking credibility, potentially pushing up term premiums (extra yield demanded for holding longer-term bonds) and bond yields over time. The Treasury said Wednesday it would at least double its bond buyback program to provide greater liquidity support, a move intended to lower long-term Treasury yields. JPMorgan said the measure addresses symptoms rather than the underlying problem: the U.S. economy is near full employment but still has a 6% fiscal deficit. With U.S. government debt above $40 trillion and issuance continuing, policymakers face greater difficulty controlling financing costs. A market survey found that about 60% of respondents expect the U.S. debt situation to keep deteriorating until it triggers a major crisis.