Looking at the first stage, financial conditions in Japan have continued to ease steadily amid increased strains in global financial markets against the backdrop of the sovereign debt problem in Europe (Chart 7).
More specifically, market interest rates including longer-term ones have been at extremely low levels, and corporate bond and CP yield spreads over Japanese government bonds (JGBs), or credit spreads on corporate bonds and CP, have remained stable at low levels. Moreover, bank lending rates have declined moderately.