The Australian bond market is slightly firmer after the release of weak US economic data.
US industrial production rose at a modest pace of 0.6 per cent in September, but faster than August's 0.4 per cent gain.
It was also reported that American pending home sales fell for the fourth straight month in September, the National Association of Realtors (NAR) said.
National Australia Bank senior economist David de Garis said the economic figures cancelled out any optimism prompted by a well-supported US government bond auction.
"US data released overnight was on the soft side and this neutralised the rise in US Treasury yields (fall in prices) that looked evident courtesy of the Treasury issuing $US32 billion ($A33 billion) in two-year notes overnight," he said.
"The two-year note auction was well-supported."
At 0830 AEDT on Tuesday, the December 10-year bond futures contract was trading at 96.035 (implying a yield of 3.965 per cent), up from 96.030 (3.970 per cent) on Monday.
The December three-year bond futures contract was at 96.970 (3.030 per cent), up from 96.950 (3.050 per cent).
In Australia on Tuesday, Reserve Bank of Australia governor Glenn Stevens will give a speech to Citi Group's Australian & New Zealand Investment Conference in Sydney.