Government debt can impact interest rates, but past research has shown mixed results. A new study analyzed the relationship between federal government debt and interest rates using different models and data sources. The researchers found that a 1% increase in government debt relative to GDP could lead to a small increase in real interest rates, typically around two to three basis points. Their analysis suggests that larger effects found in other studies may be due to not properly accounting for other economic factors. Overall, the findings support the idea that government debt can influence interest rates, but the effect is relatively modest.