The threatened return of budget deficits as the Bush administration and Congress prepare $100 billion in stimulus packages lifted longer-term yields.

But they have already embarked on technical improvements that promise to lift yields and cut costs even more.

TO lift yields as interest rates fell over the past few years, tax-free money fund managers increasingly invested in alternative minimum tax paper, which is issued by municipalities to finance student loans and other public projects considered nonessential.

While stocks rallied, bond prices fell, lifting yields, which move in the opposite direction.

Many analysts say this week's economic reports are not likely to create the kind of speculative fervor that would lift bond prices and lower yields.

Crude oil for delivery in October rose $1.80 a barrel yesterday, to $29.12, which pushed bond prices down and lifted yields on long-term Treasury bonds to 9.01 percent.

The price decline, which amounted to as much as three-fourths of a point, or $7.50 for each $1,000 face value of securities, lifted yields to levels that some market participants had thought would be high enough to attract buyers.

Such a move would have depressed bond prices and lifted yields, which compete with stocks.

One way to lift yields is to buy longer-term issues.

The result has been a steep 15 percent drop in Treasury bond prices, which lifted yields on bellwether 30-year issues to 8.90 percent, from 7 1/2 percent.