Disappointing US manufacturing data has boosted Australian bond futures contract prices.

The drop in October industrial production and November manufacturing data from the Federal Reserve Bank of New York came as Fed chief nominee Janet Yellen told a US Senate committee stimulus measures needed to continue.

Commonwealth Bank head of debt research Adam Donaldson said this added to demand for bonds.

“The data in the US on Friday night was slightly disappointing and helped give bonds a brief bid,” he said.

But debt markets were already expecting the Fed to begin tapering its stimulus measures next year under a central bank led by Ms Yellen.

“There’s already a very firm consensus she’s not going to be doing anything until March, so the data doesn’t really change that conclusion,” Mr Donaldson said.

At 0830 AEDT, the December 10-year bond futures contract was trading at 95.875 (implying a yield of 4.125 per cent), up from Friday’s 95.850 (implying a yield of 4.150 per cent).

The December three-year bond futures contract was at 96.920 (3.080 per cent), up from 96.900 (3.100 per cent).