Australian bond futures prices have fallen, after official data showed a drop in the unemployment rate.

Unemployment fell to 5.1 per cent in the month, from 5.2 per cent in July, the Australian Bureau of Statistics said on Thursday.

This was due largely to a fall in the participation rate – the number of people employed or looking for work.

The August participation rate was 65.0 per cent – its lowest level in more than five years, and down from 65.2 in July.

Nomura rates strategist Martin Whetton said Australian bond prices fell after the labour force data was released late morning.

“The data is the only reason bonds are lower,” he said.

“The market isn’t likely to do much more, since we’ve got the ECB (European Central Bank) meeting tonight.”

It was difficult to predict what the ECB would do or say at its meeting on Thursday (European time), Mr Whetton said.

However, it would dominate headlines overnight, as market-watchers anticipated some developments around the issue of euro-zone debt.

At 1630 AEST on Thursday, the September 10-year bond futures contract was trading at 96.990 (implying a yield of 3.010 per cent), down from 97.050 (2.950 per cent) on Wednesday.

The September three-year bond futures contract was at 97.570 (2.430 per cent), down from 97.640 (2.360 per cent).