Under these circumstances, the overnight call rate continues to move at around zero percent. Longer-term interest rates remain steady at low levels. Yields on long-term government bonds have declined to the 0.4-0.5 percent level, as banks and institutional investors continue to increase investment in government bonds. Yield spreads between private bonds (bank bonds and corporate bonds) and government bonds are at historical lows.
Stock prices have risen following the recovery in U.S. and European stock prices. The Nikkei 225 Stock Average is recently moving at the 8,500-9,000 yen level. In the foreign exchange market, the yen depreciated as market participants became sensitive to a possible market intervention and as some U.S. economic indicators improved.