US debt hits $40T as JPMorgan calls bond-buyback plan a 'mortgage with a credit card'

JPMorgan’s James Sullivan compared the Treasury’s plan to buy back longer-dated bonds with new, shorter-term issues to “paying your mortgage with your credit card,” a short-term fix meant to stabilize markets as U.S. debt climbs toward $40 trillion. The move briefly moves long-bond yields lower but is not a cure for the underlying debt burden, which global institutions estimate at about $350 trillion. The Treasury plans to expand liquidity-support bond buybacks to roughly $4 billion per operation for 10- to 30-year notes through 2026, with details set to be announced on Nov. 4; analysts warn the strategy defers the problem and could backfire if rates rise further.