The Australian bond market is still weaker after the central bank said it is unlikely to change the cash rate in the foreseeable future.
CMC Markets chief market strategist Michael McCarthy said bond futures prices have not been able to recover their losses made after Tuesday's Reserve Bank of Australia meeting.
"Given what we're seeing in currency markets that could be an ongoing trend," he said.
Mr McCarthy expects the Australian bond market to underperform in 2014.
"Over the medium term those better growth prospects both, globally and locally, and the pressure on inflation is likely to see further weakening (in the bond market)."
At 1630 AEDT on Wednesday, the March 2014 10-year bond futures contract was trading at 96.035 (implying a yield of 3.065 per cent), down from 96.065 (3.935 per cent) on Tuesday.
The March 2014 three-year bond futures contract was at 97.060 (2.940 per cent), down from 97.090 (2.910 per cent).
Mr McCarthy said the local bond market will be focusing on the release of official retail spending figures due out on Thursday.
"If we get an (upside) surprise in retail sales that could add to the current (bond market) weakness."