Nevertheless, some developments have given rise to concerns that market functioning has deteriorated. Specifically, with the decline in the amount of JGB transactions, the number of days when inter-dealer transactions of newly-issued 10-year bonds were not settled has been growing at an unprecedented pace since the beginning of 2018.
Moreover, while long-term interest rates are often used as a barometer for economic activity, there have been instances where Japanese long-term interest rates have merely followed the rise in overseas long-term interest rates, including those of the United States.