The yield on the 10-year US Treasury note fell to 4.65% from the 20-month high of 4.75% reached on August 21st. Lower oil and fuel prices eased concerns about near-term inflation after the US tightened sanctions on Iran without issuing further military threats. Longer-term yields nevertheless remained sharply higher for the month. The Treasury said it would use its general account balance to increase buybacks of long-term securities, adding to efforts to compress yields after a joint intervention in the Japanese yen that involved selling euros and a request for the Fed to raise the limit on its FIMA facility (a lending facility for foreign monetary authorities). Yields at the longer end of the curve had surged since July amid soaring debt issuance by AI companies and increased deficit spending by the federal government. They also rose after Fed Chairman Warsh indicated that a rate hike might not be his preferred tool for addressing higher inflation, raising the stakes of his speech in Jackson Hole.