Australian bond futures prices are lower after traders moved out of safe-haven assets as financial markets finished last week on a positive note.
St George Bank senior economist Hans Kunnen said the Dow Jones Index rose 0.8 per cent on Friday, partly helped by continuing optimism about the US economy.
"Company earnings exceeded expectations and markets were encouraged by comments made by US Federal Reserve chair Janet Yellen regarding the strength of the US economy," he said.
Dr Yellen's testimony to a Congressional committee on Wednesday was seen as a positive because she confirmed the Fed's plan was to continue to taper stimulus based on the conclusion that the US economy was improving.
At 0830 AEDT on Monday, the March 2014 10-year bond futures contract was trading at 95.905 (implying a yield of 4.095 per cent), down from 95.945 (4.055 per cent) on Friday.
The March 2014 three-year bond futures contract was at 96.980 (3.020 per cent), down from 97.020 (2.980 per cent).
Local economic data out on Monday includes the Australian Bureau of Statistics' new motor vehicle sales for January.