The Australian bond market is flat after some positive manufacturing data improved market sentiment.
Chinese manufacturing activity hit a five month high in May and US factory output growth in May hit its fastest pace since February 2011.
St George chief economist Besa Deda said help improve the market’s mood and encouraged a move into equities.
“Gains in the manufacturing gauges in China and the US yesterday and overnight, respectively, helped risk appetites,” she said.
“US two-year Treasury bond yields nudged higher (prices fell).”
At 0830 AEST on Friday, the June 2014 10-year bond futures contract was trading at 96.250 (implying a yield of 3.750 per cent), down from 96.255 (3.745 per cent) on Thursday.
The June 2014 three-year bond futures contract was at 97.190 (2.810 per cent), level with the previous local close.
Markets will be focusing on the release of the German IFO business sentiment survey for May, due out late on Friday night, Australian time.