Australian bond futures prices are higher as investors took advantage of a recent sell off in local fixed-income assets.
UBS interest rate strategist Matthew Johnson said bond futures strengthened on Monday afternoon, despite a lack of major economic news.
He said the rally was likely to be due to a sell off of bond futures in recent weeks.
"There isn't really any obvious catalyst for the moves but I guess it goes to show that the market remains in the range it has been in for the last few months," he said.
"It was at the cheap end of that range and now it has rallied a bit."
Mr Johnson expected the rally to continue during the US and European sessions on Monday night.
At 1630 AEDT on Monday, the March (2013) 10-year bond futures contract was trading at 96.670 (implying a yield of 3.330 per cent), up from 96.645 (3.355 per cent) on Friday.
The March three-year bond futures contract was trading at 97.235 (2.765 per cent), up from 97.200 (2.800 per cent).
At noon on Monday, the December 10-year and three-year bond futures contracts expired.
The 10-year December 2012 bond futures contract ended at 96.690 (3.310 per cent), and the three-year contract finished at 97.185 (2.815 per cent).