It's expected to be a quiet day for the Australian bond market, with the US celebrating Columbus Day and little domestic data being released.
"We think we'll trade in a relatively tight range today just because it's a public holiday in the US and we've got a lack of domestic data this week," ANZ interest rate strategist Zoe McHugh said.
"There have been some headlines this morning that are positive on a US resolution but we don't think any good news will come out until later in the week."
Ms McHugh said a resolution to the US political stalemate could see a sell-off in Australian bonds, although the market had recently been driven by domestic factors.
"Our market overall is looking through the US situation and is responding to the domestic situation at the moment," she said.
"Our market has seen a pretty strong sell-off over the last two weeks just on the back of stronger domestic data and the market starting to price out any further rate cuts from the Reserve Bank."
At 0830 AEDT on Monday, the December 10-year bond futures contract was trading at 95.910 (implying a yield of 4.090 per cent), unchanged from Friday.The December three-year bond futures contract was at 96.900 (3.100 per cent), up from 96.860 (3.140 per cent).