407-28. 6  BIS Review 149/2007  exposes them. 15 Adequate capital and liquidity, including for stressed circumstances, are the essential ingredients for maintaining confidence.
Yields on long-term government bonds followed a downtrend in line with a decline in yields on overseas long-term government bonds and in domestic and overseas stock prices, in addition to widespread perceptions among market participants that there is an excess of liquidity. Yield spreads between private bonds (bank bonds and corporate bonds) and government bonds are virtually level.