Traders and analysts said the sell off had nothing to do with underlying economic fundamentals, which remain positive for bonds.

It helps to spread the risk in a portfolio as the property value cycles are driven by different underlying economic fundamentals in each sector.

Nervous upset could explain the selloff of stocks with strong underlying fundamentals.

Despite the volatility in the bond market yesterday, analysts said the underlying fundamentals point to further strength.

The two also agreed that the exchange rate of the yen, then around 160, was "broadly consistent with the present underlying economic fundamentals."

Someone might have noticed that they continue to neglect those "underlying economic fundamentals."

"I think the underlying economic fundamentals will in the end have their influence," Mr. Bentsen said.

"In reality, the pessimism has gone beyond the underlying economic fundamentals."

"I think if you look at the underlying economic fundamentals in this country, they're very, very good," he said.

They agreed "to continue to cooperate closely in monitoring and implementing policies to strengthen underlying economic fundamentals to foster stability of exchange rates."