US 10-Year Yield Approaches 20-Month High
2026-08-21 16:27
By
Andre Joaquim
1 min. read
The yield on the 10-year US Treasury note rose to 4.74% on Friday, testing the 20-month highs reached earlier in the week and more than erasing the decline triggered by the Treasury Department's announcement of a larger bond buyback.
The Treasury stated it would at least double its long-maturity buybacks to $4 billion next quarter.
This added to recent efforts of compressing yields after the joint intervention on the Japanese yen by selling euros and the request for the Fed to increase the limit on its FIMA facility.
Yields on the longer end of the curve had surged since July amid soaring debt issuance from AI companies and higher deficit spending by the federal government.
Long-term yields also rose after Fed Chairman Warsh signaled that a rate hike may not be his preferred tool to combat higher inflation, increasing the stakes of speeches in Jackson Hole.
Concerns of unanchored inflation were magnified by high energy prices during the US-Iran blockade of tankers in the Persian Gulf.