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Aust bonds lower on quiet night

Australian bond futures prices are lower following a similar move in US Treasuries.

Westpac interest rate strategist Tim Jung said there had been little movement on the local bond market, despite a busy night in Europe as traders reacted to Italian Prime Minister Mario's Monti's intention to resign.

"It was a pretty quiet night, there wasn't a whole lot happening that was relevant for Australia," he said.

"European bond markets were reacting to Monti's resignation over the weekend but that had very little impact on the Aussie market so we just drifted around along with the US market."

Mr Jung said the release of National Australia Bank's monthly business sentiment survey could have an impact on the local bond market on Tuesday.

The market could rally a little if the survey showed a further decline in sentiment but traders were likely to shrug off an improvement in the survey, he said.

At 0830 AEDT on Tuesday, the December 10-year bond futures contract was at 96.920 (implying a yield of 3.080 per cent), down from 96.930 (3.070 per cent).

The December three-year bond futures contract was trading at 97.360 (2.640 per cent), down from 97.370 (2.630 per cent).