Interest rates continued to fall on the treasury market as it went down marginally for the third week running.

According to the latest auction of treasury bills, the yield on all three short-term instruments took a nose dive.

The 91-day T-Bill recorded the biggest drop of 0.64% to 34.93%, followed by the 182-day bill with a decline of 0.50% to 36.03%.

The yield on the one-year bill also fell by 0.09% to 36.10%.

These declines in the yields of the short-term instruments though marginal will save the government some cost of repaying the principal and interest at maturity.

The declining interest rates are also boosted by improved liquidity as the government continues to secure more than its target for the T-bills auction.

However, this is partly due to the debt exchange programme where the Government of Ghana bonds have been affected by haircuts, unlike T-Bills.

According to the Bank of Ghana, developments in interest rates broadly the first 11 months of this year have showed upward trends across the spectrum of the yield curve, reinforced by the tight monetary policy stance and the relatively tight liquidity conditions in the money market.

However, the latest downward trend of interest rates will come as a good omen for the economy.