SYDNEY, AAP – Surging bond yields have contributed to a lacklustre Australian share market as investors considered better returns in assets other than shares.

The market closed little changed on Monday after the Australian government 10-year bond yield rose to more than three per cent amid a higher interest rate environment.

All the share categories moved by less than one per cent.

The benchmark S&P/ASX200 index closed up 7.2 points, or 0.1 per cent, to 7485.2.

The index was about 150 points from its record high of August.

The All Ordinaries index closed higher by 1.2 points, or 0.02 per cent, to 7773.2.

The Australian dollar was buying 74.38 US cents at 1620 AEST, lower from 74.81 US cents at Friday’s close.