Australian bond futures prices are firmer as weaker than expected American employment figures convince investors the US Federal Reserve may delay tapering.
US non-farm payrolls data released on Saturday morning, Australian time, showed employers added 74,000 jobs in December, much less than the 197,000 positions analysts had expected.
The numbers convinced bond markets that the US Fed, under new chairwoman-designate Janet Yellen, may delay the pace of tapering its bond buying program, Westpac interest rate strategist Tim Jung said.
"This has really resulted in a rally in bond markets around the globe and obviously Australia is no expectation to that," he said.
"The risks are slightly now skewed towards the pace of tapering being delayed but it is quite hard to read too much into that one data print."
A late afternoon sell-off in local bonds was unrelated to official data showing Australian housing finance approvals rose by 1.1 per cent in November, he added.
"The sell-off has been the result of a little bit of profit taking given the move we have seen since non-farm payrolls."
At 1630 AEDT on Monday, the March 2014 10-year bond futures contract was trading at 95.820 (implying a yield of 4.180 per cent), up from 95.785 (4.215 per cent) on Friday.
The March 2014 three-year bond futures contract was at 96.970 (3.030 per cent), up from 96.930 (3.070 per cent).