Australian bond futures prices continued to trend lower after the release of stronger US jobs figures.
At 1630 AEST on Monday, the September 10-year bond futures contract was trading at 96.835 (implying a yield of 3.165 per cent), down from 96.975 (3.025 per cent) on Friday.
The September three-year bond futures contract was at 97.270 (2.730 per cent), down from 97.450 (2.550 per cent).
FIIG director of strategy and market development Stephen Nash said bond prices were lower in response to better than expected US jobs growth data on Friday evening, Australian time.
"The market has been concerned about the US employment report, which was much better than expected," he said.
The market rallied on the expectation that there could be quantitative easing in September and this data could put that at risk."
Friday's non-farm payrolls data showed that 163,000 jobs were added to the US economy in July compared to an expectation of 100,000.
Dr Nash said he expected other issues, such as the euro zone debt crisis, to return to influence the market later in the week.
"I think we'll see weaker European equity markets and higher peripheral (Spain, Italy, Greece, Portugal) bond spreads."