Under these circumstances, the overnight call rate continues to hover at very close to zero percent, although it rose temporarily on March 31. Longer-term interest rates such as TB and FB rates also rose temporarily toward the fiscal year-end, but they are becoming steady again at low levels.
Yields on long-term government bonds declined and were temporarily moving below the 0.7 percent level in early April, reflecting uncertainty over the domestic economic outlook. Yield spreads between private bonds (bank bonds and corporate bonds) and government bonds are contracting. In the stock market, market participants continue to be nervous largely due to uncertainty over the developments in military action against Iraq.