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

Investors feel there is no need to aggressively buy bonds now as yields may continue climbing amid signs of solid economic growth.

The decline in stocks yesterday was not the start of a trend. At this level investors should sell bonds.