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Aust bonds weaker ahead of RBA minutes

Australian bond futures prices are weaker ahead of the release of Reserve Bank of Australia board minutes on Tuesday.

National Australia Bank fixed interest strategist Skye Masters said there had been little movement during the domestic session after future prices weakened in line with US Treasuries on Friday.

"We're just sitting on the sidelines waiting to see what happens offshore tonight," Ms Masters said.

"We have done a whole heap today. US Treasuries sold off a bit into their close on Friday and we followed and we extended that this morning."

The Reserve Bank of Australian will release the minutes of its July board meeting on Tuesday followed by US Federal Reserve chair Janet Yellen's testimony to Congress on Wednesday and Thursday, Australian time.

"Markets are a bit nervous ahead of Yellen," Ms Masters said.

It came after Portuguese authorities managed to ease wider market fears over the health of Banco Espirito Santo, which is being hammered by its parent group's debt woes.

At 1630 AEST on Monday, the September 2014 10-year bond futures contract was trading at 96.560 (implying a yield of 3.440 per cent), down from 96.583 (3.417 per cent) on Friday.

The September 2014 three-year bond futures contract was at 97.420 (2.580 per cent), down from 97.450 (2.550 per cent).