When government budget deficits fall, fiscal supply-side effects are most likely to result in lower bond yields.
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When countries run budget deficits, they typically pay for them by borrowing money. When govt borrow, they compete with everybody else in the economy who wants to borrow the limited amount of savings available. As a result of this competition, the real interest rate increases and private investment decreases . Since interest rates increases yield will fall i.e coupon rate thus price of bond will fall.