why does better fiscal performance lower the interest rates of government issued treasury bonds?

Answer 1

A treasury bond is basically a line of credit issued by the purchaser to the government. You invest $100, they take it and spend it, and pay you back 5% interest (or whatever the rate is) over time. If the government is taking better care of its finances, then the Public reduces the interest rate charged on the government. If the gov't runs up its credit cards and doesn't make payments, defaults on its student loans, and loses its job and can't pay rent, then the Public raises the interest...

Answer 2

If the bank rate has reduced, people invest money in business like performing sector hence lower rate of interest does best fiscal.