Australian bond future prices have fallen in a quiet day of trading, as investors anticipate the Greek election and a possible boost to the US economy.

Westpac’s head of interest rates, Russell Jones, said prices had dropped in line with US bonds and reflected a growing optimism in the market about Sunday’s Greek elections.

Investors are becoming increasingly confident that a “middle-of-the-road” political party would prevail on Sunday, suggesting Greece would remain within the euro zone, he said.

“Also there could well be some kind of coordinated policy response if things do go awry on Sunday anyway,” he told AAP.

“There’s a G20 meeting on Monday and Tuesday and the feeling is it’s likely to put in place some sort of firewall if things do go wrong, and that in turn means the worst possible case won’t play out, at least not yet.”

But he said the Australian bond futures market had been relatively quiet on Friday as cautious investors await Sunday’s election results and any announcements out of the G20 meeting next week.

“Against this background of all the uncertainty in Europe I think very few people are really wanting to take big positions,” he said.

Investors will also be watching the Federal Reserve meeting next week, with speculation mounting that it may announce a stimulus for the US economy.

“That would tend, if it is delivered, to hold bond yields down (and send bond futures prices up),” he said.

At 1630 AEST the September 10-year bond futures contract was at 97.015 (implying a yield of 2.985 per cent) down from 97.080 (2.920 per cent) on Thursday.

The September three-year bond futures contract was at 97.715 (2.285 per cent), down from 97.745 (2.255 per cent).