The Japanese economy hit the bottom a few years ago and now Japanese companies are thinking real hard how to survive against the global competition.

Now they focus more on the business drivers. They can do the business due diligence now in three weeks as opposed to three months.

After 15 or 20 years of trial and error, Japanese companies are now becoming better at managing. They also feel better about hiring managers on the ground.

Given both the real economy and people's sentiment, I would say the Japanese economy is now about to exit a dark tunnel and move in a bright direction.

That's how the economy pushes forward; new things emerge that no one was thinking about.

Muto's comment reversed sentiment among investors and it is a reason to sell bonds. They're now thinking the economy is still recovering and yields won't keep on falling.