An additional benefit of the solid economic performance of the U.S. economy was that federal tax revenues were coming in faster than expected, an indication that the budget deficit for the fiscal year would be at its lowest level in the past three years.
Interest rates of term instruments in money markets and yields on corporate bonds and bank debentures, on the other hand, have risen and remained high due to the more cautious attitude of market participants toward credit and liquidity risks following the failure of some financial institutions.