Yields on long-term government bonds generally followed a downward trend from late November throughout December 1999, but then rebounded somewhat and are presently ranging between 1.751.80 percent. The yield spread between private bonds (bank debentures and corporate bonds) and government bonds continues narrowing, primarily that between private bonds with relatively low credit ratings and government bonds.
Stock prices, after exceeding 19,000 yen at the beginning of 2000, weakened to around 18,000-18,500 yen following the correction in the U.S. stock market. Subsequently, they recovered reacting to the rebound in U.S. stocks and have returned to the level of above 19,000 yen.