Australian bond futures are weaker after US stocks gained on a relatively quiet night for global markets.

JP Morgan interest rate strategist Sally Auld said local bond futures continued their move lower overnight.

She said the market was taking its lead from the US after stocks finished the New York session modestly higher, while the yield on US Treasury bonds also rose overnight.

“I think people are a little bit nervous given that equities continue to do reasonably well in the US and Treasuries were up a few ticks in the US as well,” she said.

Australian three year bonds traded below 97.000 level overnight for the first time since April 2012.

Ms Auld said the key drivers for the local market this week would be the release of key employment figures on Thursday and the expiry of the March futures contracts on Friday.

She said the jobs figures would need to show higher than expected jobs growth for the weakness in bonds to continue.

“If we are going to continue to sell off then we need the domestic story to consistently surprise to the upside,” she said.

At 0830 AEDT on Tuesday, the March 10-year bond futures contract was trading at 96.415 (implying a yield of 3.585 per cent), down from 96.445 (3.555 per cent) on Monday afternoon.

The March three-year bond futures contract was at 96.990 (3.010 per cent), down from 97.025 (2.975 per cent) previously.