This study empirically investigates the impact of the federal budget deficit on the nominal interest rate yields on seven and ten year treasury notes over the 1992–2003 period. To measure the budget deficit, the primary budget deficit, which excludes net interest payments by the treasury,...

This study empirically investigates the impact of the federal budget deficit on the nominal interest rate yields on seven and ten year treasury notes over the 1992?2003 period. To measure the budget deficit, the primary budget deficit, which excludes net interest payments by the treasury, is...