Yields near 1.6 percent look attractive for buyers. Concern about GM prompted some flight-to-quality buying in Japanese bonds.

The trend for firm longer bonds and weak shorter debt will continue this month. Investors feel safer buying bonds on slumping stocks.

I don't think there are any investors who can say with confidence that 20-year bonds are a great buy with stocks rallying. It's natural to see some selling of bonds ahead of the auction.

The slide in stocks is a positive for bonds. Further stocks declines will damp individuals' sentiment and could affect growth.

Yields reached an attractive level for buyers. Yields rose too much as Fukui commented, and we'll probably see some adjustments in their levels.

In the short-term yields may increase. Slack is decreasing in the economy and that is leading to inflationary pressures.