Australian bond futures prices are lower following the release of stronger-than-expected Chinese trade data.
Official Chinese government figures released on Thursday afternoon showed exports rose 14.1 per cent in December from a year earlier, while imports climbed six per cent.
Westpac interest rate strategist Tim Jung said the figures were welcomed by traders and provided a boost to the local share market and Australian dollar while causing a selloff in bonds.
"The imports came in stronger than the market expected and the exports also surged higher," he said.
"Given Australia's strong trade links with China that has got the Aussie market quite excited."
Mr Jung said the US corporate earnings reports were likely to be the key drivers for the bond market over the next week or so.
At 1630 AEDT on Thursday, the March 10-year bond futures contract was trading at 96.570 (implying a yield of 3.430 per cent), down from 96.620 (3.380 per cent) on Wednesday afternoon.
The March three-year bond futures contract was at 97.160 (2.840 per cent), down from 97.220 (2.780 per cent).