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

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

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

Negative sentiment has basically led to across-the-board declines, very few stocks have escaped unscathed.

When growth is slower-than-expected, stocks go down. When inflation is higher-than-expected, bonds go down. When inflation is lower-than-expected, bonds go up.