Australian bond futures prices have closed weaker after the European Union reached an agreement on a bailout deal for Cyprus.
The EU and the IMF struck a deadline-day deal with Cyprus to resurrect a bailout but only after a radical downsizing of the island's financial sector.
Cyprus President Nicos Anastasiades battled for 12 hours with its international creditors, but let one banking chain go to the wall and left major investors in the island's biggest bank take a giant hit.
ANZ head of interest rate research Tony Morriss said global equity markets had been buoyed by the news on Cyprus.
"It looks like they're going to avoid a situation of a potential exit from the EU, so that's been viewed positively by markets and seen bond yields move higher," Mr Morriss said.
Following a firmer start, local bonds traded in a tight range during Monday's Australian session.
At 1630 AEDT on Monday, the June 10-year bond futures contract was at 96.355 (implying a yield of 3.645 per cent), down from Friday's local close of 96.435 (implying a yield of 3.565 per cent).
The June three-year bond futures contract was at 96.91 (3.19 per cent), down from 97.000 (3.000 per cent) previously.