The levels of long-term interest rates are determined by the daily movements in the government securities market. In order to understand the mechanics of how government securities are priced and how such prices would fluctuate, it is important to examine, for example, the arbitrage between cash,...

Enhancing market liquidity and efficiency in government bond markets is a central issue which needs to be addressed so as to ensure that the yield curve, which acts as the benchmark for yen interest rate instruments, is smoothly determined and reflects prevailing market prices. An efficient...