Recent economic indicators show that economic activity bottomed out in the April-June quarter of 2020 and has already started to pick up, but the situation remains severe. For the time being, it is essential to aim to achieve both containment of the spread of COVID-19 and expansion of economic activity.
While we have a benchmark of 60 percent cash and 40 percent bond we have not been able to replicate this benchmark. As a result, the average duration of our currency portfolio is well short of the benchmark.