As a result, the overnight call rate (uncollateralized, weighted average) regained stability at the end of November and interest rates on term instruments began to decline from late February. Yields on long-term government bonds, on the other hand, declined to a historical low of 1.49 percent in late March reflecting releases of weak economic indicators.
During the same period, stock prices (Nikkei 225 Stock Average) fell around early January once marking ¥ reflecting the cautious economic outlook and mounting uncertainty about the future. Stock prices later rebounded with fluctuations and recovered to ¥ at the end of March 1998, reflecting implementation of the government’s stimulus measures including the use of public funds.