Australian bond futures prices are mixed following a volatile week driven by high inflation figures and weak manufacturing data out of China.
"It was a very volatile week last week," Westpac interest rate strategist Tim Jung said.
"We had the large Australian consumer price index print followed by the flare ups in emerging markets and weak Chinese data - it really did put the motor under bond prices.
"A large part of the move was driven by positioning, it's been a very common trait to be short treasuries and long equities."
Mr Jung said the volatility would likely continue before investors begin positioning ahead of the Federal Open Market Committee tapering decision on Thursday morning, Australian time.
On Tuesday, the market would be looking forward to the National Australia Bank business confidence survey, he said.
"The NAB survey could be quite crucial, just to see how sustainable that pickup in confidence we saw post-election has been," he said.
At 0830 AEDT on Tuesday, the March 2014 10-year bond futures contract was trading at 96.005 (implying a yield of 3.995 per cent), down from 96.010 (3.990 per cent) on Friday.
The March 2014 three-year bond futures contract was at 97.150 (2.850 per cent), unchanged from Friday.