1.   An increase in interest rates hurts bonds by making it more expensive for investors to fund bond purchases.

2.   Analysts said investors looking at this may decide to delay bond purchases until interest rates rise.

3.   Analysts said investors looking at this might decide to delay bond purchases until interest rates rise.

4.   Banks borrow money at the lower overnight rate to fund bond purchases.

5.   Because many institutional investors fund bond purchases by borrowing, the comments sent bonds lower, as hopes for a rate cut were dashed.

6.   Because many investors fund bond purchases by borrowing on the money market, lower overnight rates make bonds more attractive.

7.   Because many investors finance bond purchases by borrowing in the short-term money market, lower overnight rates would be likely to give a boost to bonds.

8.   Bonds have gotten a boost from record-low Japanese interest rates because many investors fund bond purchases by borrowing at shorter maturities.

9.   Bonds also got some support from an outright bond purchase by the Bank of Japan, said Kazuhiko Sano, a bond analyst at Sumitomo Capital Securities.

10.   Bonds rise when interest rates are low because low rates make it cheaper for investors to fund bond purchases.