Australian bond futures prices are weaker ahead of the central bank's monetary policy statement.
Investors are waiting to see what the Reserve Bank of Australia will say on Friday after it earlier this week indicated it would keep interest rates on hold for some time, Westpac senior market strategist Damien McColough said.
"Given the RBA went to a neutral stance, there will be a lot of focus on the inflation component of the forecast," he said.
"The market is expecting the RBA may be a little bit more hawkish."
The RBA's Statement on Monetary Policy will be released and 11.30am (AEDT).
Mr McColough said US treasuries were weaker overnight as investors await for the release of US non-farm payrolls data for January, the key American employment indicator.
At 0830 AEDT on Friday, the March 2014 10-year bond futures contract was trading at 95.910 (implying a yield of 4.090 per cent), down from 95.970 (implying a yield of 4.030 per cent) on Thursday.
The March 2014 three-year bond futures contract was at 96.970 (3.030 per cent), down from 97.010 (2.990 per cent).