Japanese government bonds fell during morning trading in Tokyo, tracking the overnight decline in U.S. Treasury prices. The yield on the 30-year Japanese government bond rose by 2.5 basis points to 3.300%. The Japanese bond market may also be under pressure due to market concerns that rising inflation could lead the Bank of Japan to raise interest rates. In a commentary, Rodrigo Catril of National Australia Bank noted that the bond market appears to be reassessing the inflationary impact of sustained energy price disruptions stemming from the conflict involving Iran. The senior foreign exchange strategist added that a more prolonged energy shock could exacerbate inflation and potentially weaken economic growth. Another focal point for the market is likely the Japanese Ministry of Finance's upcoming auction of approximately 2.6 trillion yen in 10-year Japanese government bonds.