The Australian bond market is mostly flat after a quiet night of trade with Wall Street closed for the Presidents' Day public holiday.
St George economist Janu Chan said economic data showing that bank lending in China in January rose more than the market was expecting is helping maintain market optimism and keeping investors away from safe-haven assets.
"The more positive sentiment yesterday extended overnight in a quiet session of trading," she said.
"While US Treasury markets were closed, three-year yields on Australian bond futures rose slightly (prices fell) reflecting stronger risk appetite, while 10-year yields were little changed."
At 0830 AEDT on Tuesday, the March 2014 10-year bond futures contract was trading at 95.895 (implying a yield of 4.105 per cent), level with the local close on Monday.
The March 2014 three-year bond futures contract was at 96.970 (3.030 per cent), down from 96.980 (3.020 per cent).
On Tuesday, the Reserve Bank of Australia will release the minutes of its February board meeting at which it kept the cash rate unchanged at a record low of 2.5 per cent and said it wouldn't be changing the cash rate anytime soon.