Australian bond futures prices have fallen after stronger than expected domestic employment data lowered expectations the central bank would deliver a string of interest rate cuts in the coming months.

Commonwealth Bank interest rate strategist Phillip Brown said bond prices fell on Thursday after the Australian Bureau of Statistics released monthly employment data for March.

The data showed 44,000 jobs were added to the national economy in the month, well above economists’ expectations for an increase of 5,000 jobs.

The unemployment rate remained steady at 5.2 per cent while the participation rate, rose to 65.4 per cent, from 65.2 per cent the previous month.

Mr Brown said the data reduced the chances the Reserve Bank of Australia would deliver a series of interest rate cuts over the coming months.

The RBA kept the cash rate on hold at 4.25 per cent in April but indicated it was likely to cut in May in response to weaker than expected economic growth.

However, it said it would wait to see quarterly consumer price index (CPI) data, to be released later this month, before making its decision.

Mr Brown said that while the May rate cut was expected to go ahead, expectations of further cuts had been dashed.

“It’s a bit hard to tell the internal thoughts of the RBA board members, but we don’t think this is going to change their action in May,” he said. “But what this data does mean is that there is now less prospect of the RBA embarking on a series of rate cuts.”

At 1700 AEST on Thursday, the June 10-year bond futures contract was trading at 96.150 (implying a yield of 3.850 per cent), down from Wednesday’s close of 96.170 (3.830 per cent).

The June three-year bond futures contract was at 96.690 (3.310), down from 96.770 (3.230 per cent).