While 10-year JGB yields had been hovering in the range of around plus and minus 0.25 percentage points from the target level, a distortion has occurred in the relative relationships between the interest rates of JGBs with 10-year maturity and those with other maturities. A large price gap has also been observed between spot and futures markets.
Such market distortions have resulted in, for example, difficulty in the pricing of corporate bonds at the time of issuance. If these market conditions persist, this could have a negative impact on firms' financing environment, such as issuance conditions for corporate bonds.