The 420 is indicating the catalytic converter. It takes good signals from the O2 sensors to be able to test, and flag the converter's efficiency dropping.
Refer to
this article and in particular the sine wave appearance of a normal O2 sensor signal..
The way the catalytic converter is tested is that the front A/F sensor on your vehicle will see the characteristic sine wave appearance as the ECU swings the mixture slightly, but the rear sensor should see only a straight line signal with a good converter burning any remaining hydrocarbons and the downstream exhaust having a unifrom reading of whatever O2 is left in the exhaust stream.
As the converter begins to degrade, the rear sensor signal starts looking more like the front sensors swinging signal.. At some point, the ECU is seeing similar sine wave like signals from both sensors, indicating that the converter is no longer catalyzing the remaining gases.. At that point the ECU will give the P0420 error.
You mention "imbalance" in the sensors. That is not an issue.. In your case since you have a California emissions vehicle the front and rear sensors produce different profile signals anyway since the front one is a wide band A/F sensor and the rear is the standard narrow band O2 sensor.. Since the sensors are new, I can't think of any reason you would need to replace them again when replacing the catalytic converter..
One question, was the front sensor that you replaced purchased from Toyota (and know it is the exact right part)? Since this sensors signal is the reference to which the rear one is compared to, it needs to be known that it output is correct, as opposed to unknowns introduced into the system by an aftermarket sensor that may or may not be right for your vehicle.
Some aftermarket sensors that don't work well with Toyotas. One issue is the length of the sensor not matching the length of the "bung" the fitting on the exhaust that the sensor is mounted in.. If the sensor doesn't center properly in the exhaust it's readings can be off.