Australian three-year bond futures are slightly weaker following US Federal Reserve chairman Ben Bernanke's testimony before Congress.
At 0830 AEDT on Wednesday, the March 10-year bond futures contract was trading at 96.645 (implying a yield of 3.355 per cent), unchanged from Tuesday's local close.
The March three-year bond futures contract was at 97.250 (2.750 per cent), down from 97.260 (2.740 per cent) previously.
RBC Capital Markets fixed income specialist Michael Turner said local bond futures rose during the European session overnight after Italian bonds yields spiked in the wake of election results that appear to have left the euro zone nation politically deadlocked.
But, Mr Turner said, local prices fell back early on Wednesday morning after Dr Bernanke's six-monthly testimony to Congress.
He said that while Dr Bernanke signalled the Fed's asset-buying program would continue, he didn't appear as supportive of the stimulus measures as some traders had expected.
"Bernanke wasn't as dovish as a few people expected so we're toward the bottom of our overnight range," he said.
Mr Turner said traders on Wednesday would be watching the release of official domestic construction data for the December quarter and capital expenditure figures on Thursday.
"We're sort of trading flat but with an eye to the data today and more importantly to CAPEX tomorrow," he said.