As in the case of asset markets that do not function properly, when the equilibrium price is not achieved rapidly enough and the adjustment process is slow, the price dynamics will take longer and might even overshoot, generating destabilising patterns.
This is because with HTM, there is no incentive/compulsion whatsoever for use of market-based solutions like IRS/IRF which also require constant monitoring, infrastructure, transaction costs like brokerage and margins etc. Indeed, fears that such roll-back may be disruptive, and disorderly, are totally unfounded if one considers the fact that there is “overwhelming net fixed rate receiving” appetite/ interest in the Rs.