The Australian bond market is slightly weaker in quite trade as traders sit on the sidelines ahead of the release US jobs data for September.
The nonfarm payrolls figures are part of a raft of economic data to be released during the offshore session on Tuesday night (AEDT), that was originally due during the October 1-16 government shutdown.
"US Treasuries were little changed last night in a quiet session ahead of tonight's US payrolls data," ANZ economists said in a research note.
"Australian bond futures sold off modestly, underperforming US Treasuries."
The market is expecting employment growth of 180,000 in the US in September and for the unemployment rate to be unchanged at 7.3 per cent.
A strong result for the jobs data could change expectations about when the US Federal Reserve will wind down its economic stimulus program.
The Fed is not expected to start tapering until next year.
"Financial markets would likely need to see a print above 225,000 and greater than a 0.1 percentage point drop in the unemployment rate to bring forward tapering expectations," ANZ said.
At 0830 AEDT on Tuesday, the December 10-year bond futures contract was trading at 95.935 (implying a yield of 4.065 per cent), down from 95.955 (4.045 per cent) on Monday.The December three-year bond futures contract was at 96.890 (3.110 per cent), down from 96.920 (3.080 per cent).