As the government steps up sales of government bonds for individuals, the shift of funds from deposits into government bonds as low-risk assets is gathering pace, while banks are becoming increasingly cautious against the backdrop of changing interest-rate conditions.
The government is reported to have stepped up sales of government bonds for individuals.
About two and a half years have passed since the Bank of Japan began normalising monetary policy. Markets are said to be pricing in the terminal level for the policy rate, and a shift in individual funds from deposits into government bonds has been observed.
Against this backdrop, banks are reported to be increasingly cautious about fund inflows and outflows and market interest-rate levels.