US 10-Year Yield Falls from 20-Month High
2026-08-19 13:19
By
Andre Joaquim
1 min. read
The yield on the 10-year US Treasury note fell to 4.65% on Wednesday after testing 20-month highs of 4.75% in the previous session after the Treasury announced it would double the size of buybacks on long-dated securities.
The move would increase the maximum size of operations to at least $4 billion.
This was in line with the department's sharp efforts to limit the recent surge in long-dated yields as soaring AI-debt issuance, higher deficit spending, and risks of elevated inflation.
Recent measures by the Treasury included a joint intervention with Japan to support the yen by selling euros, as Tokyo's common defense of a weak currency is made of selling long-term Treasury notes and bonds.
On top of that, Secretary Bessent called for the Fed to increase its FIMA facility past the threshold of $60 billion, which would allow Japan to access dollar liquidity without selling Treasuries.
Meanwhile, minutes by the FOMC due shortly could add insight to the magnitude of a divided Fed.