Some buying to match the index change may provide underlying support for bonds.

Yields will probably edge lower as a slowdown in the U.S. economy may fuel concern about Japanese exporters.

Koizumi's victory triggered a rally in stocks and fueled optimism about an escape from deflation.

We may overshoot above 120, to 122. But I think that's about it. I think we're at the very, very high level of the range.

Bonds will probably edge higher following a plunge in U.S. equities and gains in Treasuries. Bonds will take their cue from stocks.

Still, [Japan] will keep its low interest rate environment. And more and more money from individuals and (corporations) will flow into America and Europe -- mostly to North America.