The Australian bond market is weaker after good German economic confidence figures encouraged traders to move out of safe-haven assets.
At 0830 AEDT on Wednesday, the March 10-year bond futures contract was trading at 96.415 (implying a yield of 3.585 per cent), down from 96.440 (3.560 per cent) on Tuesday.
The March three-year bond futures contract was at 97.070 (2.930 per cent), down from 97.090 (2.910 per cent).
On Tuesday night, Australian time, a ZEW Centre for Economic Research report showed German economic sentiment in February hit its highest level since April 2010.
JP Morgan interest rate strategist Sally Auld said equity markets rose and bond futures prices fell after the release of the German figures.
"People really focused on the ZEW sentiment survey in Germany," Ms Auld said.
"We're right down the bottom of (the recent price) range.
"People who have been trading the range would be inclined to buy here."
On Wednesday, the Australian Bureau of Statistics will release its wage price index for the December quarter.
"In terms of the recent trading range, if we get an upside surprise that could be the thing that sees us sell off a bit further," Ms Auld said.