Longer-dated United States Treasury yields moved higher on Friday as concerns over the Treasury Department's expanded debt buyback programme and rising government debt continued to weigh on bond markets.
The yield on the 30-year Treasury bond, one of the maturities targeted by the buyback programme, rose more than 3 basis points to 5.273%, compared with 5.21% a week earlier.
The benchmark 10-year Treasury yield, which influences borrowing costs for mortgages, auto loans and credit cards, climbed more than 3 basis points to 4.734%. It stood as low as 4.63% last Friday.
The two-year Treasury yield, which is more closely linked to expectations for Federal Reserve interest rates, increased more than 4 basis points to 4.232%. The yield had fallen to around 4.10% a week earlier.
A basis point is equal to 0.01 percentage point, while bond yields and prices move in opposite directions.
Treasury yields rebounded sharply on Thursday, with both 10-year and 30-year yields climbing more than 5 basis points.
The move erased the 10-year yield's decline from Wednesday, when Treasury Secretary Scott Bessent stepped into the bond market by announcing an expansion of Treasury repurchases aimed at easing pressure on longer-dated debt.
The initial rally has since faded as investors remain concerned about the outlook for government borrowing and the effectiveness of the buyback programme.
Markets are now looking ahead to Federal Reserve Chair Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium, where he could provide insight into the outlook for longer-term interest rates and the central bank's independence.
Investors will also focus on the latest reading of the Personal Consumption Expenditures (PCE) price index, the Fed's preferred inflation gauge, due next Wednesday.
