The Australian debt market holds back with a weak start as the entire trading floor waits for the release of the Gross Domestic Product figures before noon.

The clearing of positions resulted in a 4.777 rise in the yield of the Commonwealth Government April 2020 bond. The 2020 bond closed at 4.766 percent on Tuesday. The May 2013 bond was also up from 4.242 percent to 4.266 percent.

Moreover, the September 10-year bond futures contract was at 95.240, which is within the level of its Tuesday's close. The September three-year bond futures contract was at 95.700, also the same level with its previous close.

National Australia Bank (NAB) head of research Peter Jolly explained that the Australian market is not following the lead set by US Treasuries because traders are clearing their positions before the release of the Australian economic data at 11:30 a.m.

Jolly said, “I think there's a reasonable amount of uncertainty about how we print here.” The research head said the Australian market will also be keeping a watchful eye on the US ISM manufacturing data later tonight, as well as, the US nonfarm payrolls on Friday night.

“How this ISM prints is going to be very important for the tone of the market ahead,” he said.