Australian bond futures prices have fallen after new US Federal Reserve head Janet Yellen reassured a Congress committee that she would not be changing policy.
Dr Yellen told a Congressional committee that the Fed would continue to slowly reel in its large bond purchase program while keeping a close eye on the labour market, where recovery remains "far from complete".
"There was a modest risk-on tone in financial markets overnight following positive comments from new US Federal Reserve chair Janet Yellen," an ANZ economics report said.
"Both European and US equities rallied strongly and US Treasuries sold off, particularly at the long end."
At 0830 AEDT on Wednesday, the March 2014 10-year bond futures contract was trading at 95.830 (implying a yield of 4.170 per cent), down from 95.875 (4.125 per cent) on Tuesday.
The March 2014 three-year bond futures contract was at 96.910 (3.090 per cent), down from 96.930 (3.070 per cent).
Local data out on Wednesday includes the release of the Westpac/Melbourne Institute Survey of consumer sentiment.