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 reversing a decline triggered by the Treasury Department’s announcement of larger bond buybacks. The Treasury said it would at least double long-maturity buybacks to $4 billion next quarter. The increase came amid recent efforts to compress longer-term yields, including a joint intervention in the Japanese yen by selling euros and a request for the Federal Reserve to raise the limit on its FIMA facility (a program that provides foreign central banks access to dollar liquidity). Longer-term yields have surged since July as AI companies issued more debt and the federal government increased deficit spending. Yields also rose after Fed Chairman Warsh indicated that raising interest rates may not be his preferred response to higher inflation, increasing the significance of speeches at Jackson Hole. High energy prices during the US-Iran blockade of tankers in the Persian Gulf further intensified concerns that inflation expectations could become unanchored.