Meanwhile, the long-term government bond yield declined to a record low of below 2.1 per cent in early April 1997. However, it recently rose to around 2.5 per cent as market uncertainties about the economic outlook and about Japanese financial institutions have gradually subsided in line with developments in the stock market.
With respect to bank lending rates, the short-term prime lending rate has remained at a record low level of 1.625 per cent since September 1995. The long-term prime lending rate had been moving at the record low of 2.5 per cent since December 1996.