Good US data weakens Aust bond futures

Australian bond futures prices have continued to weaken following better US economic figures.

Solid US retail sales and consumer confidence figures last week are adding to speculation that the US Federal Reserve will hike interest rates sooner.

"The global bond market sell-off continued on Friday night," ANZ economists said.

"Economic data were supportive of these moves with solid US retail sales and consumer confidence further building the case for the Federal Reserve to raise interest rates."

At 0830 AEST on Monday, the September 2014 10-year bond futures contract was trading at 96.330 (implying a yield of 3.670 per cent), down from 96.400 (3.600 per cent) on Friday.

The September 2014 three-year bond futures contract was at 97.125 (2.875 per cent), down from 97.160 (2.840 per cent).