Eds: reissuing to recast headline, abstract and lead par
SYDNEY, May 12 AAP - Australian bond futures prices are slightly lower after a quiet offshore session.
St George senior economist Hans Kunnen said there was very little to drive financial markets.
"European equity markets sold off but remained near three-month highs. There were no obvious drivers apart from some earnings results and the events in Ukraine," he said.
"Given the relatively stable risk environment, Australian three-year government bond yields (implied by futures) were stable."
At 1630 AEST on Monday, the June 2014 10-year bond futures contract was trading at 96.170 (implying a yield of 3.830 per cent), down from 96.185 (3.815 per cent) on Friday.
The June 2014 three-year bond futures contract was at 97.120 (2.880 per cent), down from 97.130 (2.870 per cent).
The main event for local financial markets this week is the release of the federal budget on Tuesday night.
Treasurer Joe Hockey is expected to announce a range of spending cuts to put the budget on track to surplus and is also likely to introduce a deficit levy.