Japanese government bonds fell during morning trading in Tokyo, tracking an overnight decline in U.S. Treasuries. Renewed risk appetite, fueled by gains on Wall Street overnight and a rebound in Japanese equities this morning, also weighed on the domestic bond market. Additionally, investors may be adopting a cautious stance ahead of the Japanese Ministry of Finance's auction of approximately ¥700 billion in 30-year government bonds scheduled for today. Tomohisa Fujiki of Citigroup Investment Research noted in a report, "Following the rally over the past month, the appeal of the super-long-term bond sector has diminished." The rates strategist added, "Pension funds are likely to turn into net sellers as they conduct rebalancing." The yield on the 30-year Japanese government bond rose by 4 basis points to 3.390%.