Australian bond futures prices are higher after a former Greek prime minister’s comments that the nation could exit the eurozone encouraged traders to move to safe-haven investments.

Lucas Papademos said the Greek government was considering making preparations to ditch the euro and re-adopt the drachma.

Nomura rates strategist Martin Whetton said the comments made markets nervous overnight.

“I wouldn’t put a lot of weight on what he said because he is a former PM, not a current PM, but it was enough to spook the market,” Mr Whetton said.

“We are still very much in a broken market since Friday’s enormously strong rally.”

At 0830 AEST on Wednesday, the June 10-year bond futures contract was trading at 96.900 (implying a yield of 3.100 per cent), up from 96.840 (3.160 per cent) on Tuesday.

The June three-year bond futures contract was at 97.580 (2.420 per cent), up from 97.520 (2.480 per cent).

Mr Whetton said there would be a lot of attention on an informal summit of European Union (EU) leaders in Brussels on Wednesday night, Australian time.

The meeting is expected to discuss a new approach to fixing the euro zone government debt crisis.

“That’s the big thing people are watching. They’re waiting to see at what point does the EU, ECB (European Central Bank) step up to a new level of intervention,” he said.