Specifically, a temporary lull in financial markets due to a decline in government bond yields is likely to dilute the sense of urgency among the government and the public, and thus weaken the momentum for progress toward fiscal reforms.
If the government continues to run fiscal deficits, a possibility arises in which the central bank is forced to supply an unlimited amount of liquidity – in the form of either liquidity provision against government bonds as collateral or an outright purchase of government bonds – in order to get around a re-emergence of financial system instability.