It is not that these investors cannot sell long term bonds and leave at a moment’s notice, it is that investors in longer maturity bonds are likely to be a little more stable than investors who want overnight exposure only. At the same time, we have steadily expanded investment limits for foreign investors in government bonds, and will continue doing so.
Thus, Japan's economy has picked up as a trend, although it has remained in a severe situation due to the impact of COVID-19. Before moving on to economic activity in the corporate and household sectors, let me explain developments in overseas economies. Overseas economies have recovered on the whole, albeit with variation across countries and regions (Chart 1).