Australian bond futures prices are slightly higher after a batch of US economic data came out in line with market expectations.
Australian bond futures have followed US Treasuries higher following the release of housing starts, building permits, industrial production and preliminary consumer confidence data in the US on Friday night, ANZ economists say.
"Key US data printed broadly in line with market expectations, providing little market reaction," the economists said.
"Industrial production was in line with expectations, with lower utilities output and weaker business equipment manufacturing offsetting stronger-than-average rises in vehicle production and consumer goods.
"Housing starts for December were slightly stronger than expected but permits to build houses were somewhat weaker.
"US Treasuries rallied very modestly ... Australian bond futures also rallied modestly."
At 0830 AEDT on Monday, the March 2014 10-year bond futures contract was trading at 95.965 (implying a yield of 4.035 per cent), up from 95.955 (4.045 per cent) on Friday.
The March 2014 three-year bond futures contract was at 97.140 (2.860 per cent), up from 97.120 (2.880 per cent).