Australian bond futures prices are lower after a survey showed business confidence improved in January.
At 1630 AEDT on Tuesday, the March 10-year bond futures contract was trading at 96.570 (implying a yield of 3.430 per cent), down from 96.580 (3.420 per cent) on Monday.
The March three-year bond futures contract was at 97.220 (2.780 per cent), down from 97.230 (2.770 per cent).
Westpac senior market strategist Damien McColough said no particular trend was evident.
"The market's drifted off a couple of ticks but without any real material drivers overnight ... so I think we're caught watching offshore and feeding off their results," he said.
The National Australia Bank business survey for January was released on Tuesday and although bond futures prices dropped following the report that business confidence was improving, they rallied within the hour.
"The confidence data stayed strong, and the conditions index was less weak than last time, so it sparked a little bit of a sell-off at the time but we rebounded from that already," Mr McColough said.
Mr McColough said the outlook for the week remained steady.
"We're looking for opportunities to fade rallies," he said.
"We don't think there's going to be any major repricing of yield per se here in Australia, and we also don't think you need to be in a huge bearish trend.
"I think we're in a range trade and we're somewhere near the upper end in price, lower end in yield in terms of range, so that's my week, looking for opportunities to sell."