People will view a worse-than-expected machinery orders figure as a bond positive. That may help bonds trim some of losses.

People will probably find it hard to buy bonds ahead of the consumer-prices report. A strong trend of rising core prices will probably encourage people to reduce their bond holdings.

Investors will probably hold off buying bonds before the release of the report on core prices. Gains in core prices will strengthen the case for higher rates.

Koizumi's dream of keeping yields low during a recovery will probably fail. His government can't prevent the increase in yields as the economy extends its expansion.

Thirty-year bonds look attractive. There is solid demand for bonds, such as 20- and 30-year debt, so the sale will go smoothly.

Due to uncertainty over interest rates, along with the bull-run on the stock market, institutional investors are hesitant to buy debt paper actively.