At 10:30 (AEST), the benchmark S&P/ASX 200 index was down 9.10 points or 0.13 percent at 6,908.20, while the broader All Ordinaries index was down 11.60 points or 0.16 percent at 7,177.70.
Materials and financials were only two sectors rising in a sea of red at morning trade, largely helped by a 4.55 percent surge from mining giant BHP and 5.84 percent gain in Westpac bank.
The losses were led by Consumer staples which slumped at 2.82 percent as Australian major supermarket chain Coles recorded a 6.11 percent dive, with a 2.81 percent drop in information technology not helping the morning trade.
"Stocks generally have now departed from traditional valuation measures," CMC Markets chief market strategist Michael McCarthy said.
"More disturbing is the clear divergence in thinking between bond and share investors. Share markets appear to expect lower interest rates for longer, whereas bond markets are clearly reflecting rising rates this year. The inevitable resolution of this conflict could lead to violent market moves."
In the financial space, Australia's big banks were mostly higher with ANZ up (0.90 percent), National Australia Bank up (1.14 percent) and Westpac Bank up (5.84 percent), however, the Commonwealth Bank was down (0.69 percent).
Mining stocks mixed with Rio Tinto up (0.87 percent), BHP up (4.55 percent), Fortescue Metals up (1.90 percent), however goldminer Newcrest was down (3.19 percent).
The country's oil and gas producers sank with Oil Search down (0.59 percent) and Santos down (0.71 percent), Woodside Petroleum unchanged (0.00 percent).
Australia's largest supermarkets plunged with Coles down (6.11 percent), and Woolworths down (2.76 percent).
Meanwhile telecommunications giant Telstra was down (0.75 percent), the national carrier Qantas dropped (0.21 percent) and biomedical firm CSL dived (1.77 percent).
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