Of the policy implications that are pointed out in the Report, the effects on market liquidity of the issuing maturity and lot of government bonds and taxes offer valuable insights into how we can enhance liquidity in the market of Japanese government securities. Concerning these recent activities of the CGFS, it should be recognized that the Committee is not working in a vacuum.
Some data: since the early 1990s the 10-year nominal yields on Government bonds have declined by 10 percentage points in the UK, 9 in the euro area, 6 in the US and Japan; short-term nominal interest rates have followed a similar pattern though with a larger volatility. How come? What are the associated risks and policy changes?