As for the financial environment, the outstanding balance of current accounts at the Bank of Japan is moving at the 29-30 trillion yen level, as the Bank has been providing ample liquidity. Under these circumstances, the overnight call rate continues to move at around zero percent. Interest rates on term instruments remain steady.
Meanwhile, interest rates on Euroyen futures are recently declining gradually after rising noticeably from late August. Yields on long-term government bonds rose rapidly reflecting an improved outlook for Japan’s economy, and are recently moving in the range of 1.4-1.6 percent. Meanwhile, yield spreads between private bonds (bank bonds and corporate bonds) and government bonds are widening slightly after the rebound in long-term interest rates.