Australian bond futures prices are firmer following a surge in US jobs growth.
The US Labor Department reported on Friday that there were 248,000 new jobs in September, which sent the unemployment rate down to a six year low of 5.9 per cent.
St George senior economist Janu Chan said the positive figures raised concerns that the US Federal Reserve might increase its interest rate sooner than previously thought.
"The reaction in bond markets to US payrolls was relatively muted," Ms Chan said.
The strength in the local bond market came as Australian job advertisement numbers rose for a fourth consecutive month, an encouraging sign that the labour market is improving after unemployment hit a 12 year high in July.
At 1710 AEDT on Monday, the December 2014 10-year bond futures contract was trading at 96.535 (implying a yield of 3.465 per cent), up from 96.510 (3.490 per cent) on Friday.
The December 2014 three-year bond futures contract was at 97.300 (2.700 per cent), up from 97.280 (2.720 per cent).
Trade in Australian financial markets was relatively quiet on Monday, with parts of the country off for the Labour Day public holiday.