Bond futures prices have surged on the back of disappointing economic data out of the US.

Growth in the US manufacturing sector slowed for the fifth straight month in March.

And US businesses increased nonfarm payrolls by just 189,000 jobs in March, payrolls firm ADP said, the first time since January 2014 that fewer than 200,000 jobs had been added.

The weak data gave US bond prices a boost, and the Australian market followed suit, ANZ economists said.

“US employment and manufacturing data undershot market expectations, driving a solid rally in US Treasuries,” they said.

At 0830 AEDT, the June 2015 10-year bond futures contract was trading at 97.725 (implying a yield of 2.275 per cent), up from 97.665 (2.335 per cent) on Wednesday.

The June 2015 three-year bond futures contract was at 98.370 (1.630 per cent), up from 98.320 (1.680 per cent).


Government bond and bank bill yields:

* CGS 4.75 pct July 2017, 1.720% unchanged from Wednesday

* CGS 2.75 pct April 2024, 2.281% unchanged

Sydney Futures Exchange prices:

* June 2015 bill futures, 98.040 from 98.020

* September 2015 bill futures, 98.160 from 98.150

(*Closes taken at 1630 AEDT previous local session)

Source: IRESS