The Australian debt market opened with traders selling off bonds.

The yield on the Commonwealth Government April 2020 bond was up 4.915 percent from Friday's close of 4.855 percent. The May 2013 bond was at 4.484 from Friday's 4.387 percent.

On the Sydney Futures Exchange, the September 10-year bond futures contract was at 95.080. The value is lower than Friday's close of 95.165. The September three-year bond futures contract was also lower than Friday's 95.560. The three-year bond was at 95.460.

According to Commonwealth Bank head of research Adam Donaldson, the favorable jobs loss report of the U.S. Labor Department on Friday was a signal for Monday's sell off. Donaldson said, “We saw a sizeable sell off on Friday night in the wake of better than expected employment data coming through... Ten year yields have increased about seven points over the session and that's contributed to an eight point Aussie sell off in ten years as well.'

However, Donaldson claims “we're not expecting a major move from here” because of “domestic events this week that should start to drive sentiment.”

Traders are waiting for the Reserve Bank's interest rate on Tuesday and the long-due political decision. Donaldson emphasized that “the keys will really revolve around the RBA commentary and in particular whether the stronger GDP and Capital Expenditure figures released over the last couple of weeks leave them suggesting that they're more inclined to lift rates again.”