Australian bond futures prices are marginally weaker despite more signs Chinese economic growth is slowing down.

Chinese manufacturing activity contracted in March to its weakest rate in eight months, HSBC’s latest preliminary purchasing managers’ index (PMI) showed.

The index, which tracks manufacturing activity in China’s factories and workshops, fell to 48.1 from a final reading of 48.5 in February, in another sign the economy of Australia’s biggest trading partner is slowing down.

Disappointing economic news usually drives investors towards safe-haven assets, but the market did not react as expected, UBS interest rate strategist Matthew Johnson said.

“We expected bond prices to rise given the Chinese manufacturing PMI was weaker than expected but that didn’t happen,” he said.

“I think it’s those sellers in US interest rate futures which have pushed the price down of Australian bonds because people monitor the US to gauge where Australia would be and it’s that cross-market influence that has outweighed the Chinese data.”

During morning trade, prices were slightly higher after Ukraine’s leaders said Russia could be about to invade as its troops claimed the last Ukrainian-held military base in the Crimean region.

St George Bank senior economist Jo Horton said political worries over Crimea had boosted demand for safe-haven US government bonds, which had given Australian bonds a boost at the open.

At 1630 AEDT on Monday, the June 2014 10-year bond futures contract was trading at 95.820 (implying a yield of 4.180 per cent), down from 95.825 (4.175 per cent) on Friday.

The June 2014 three-year bond futures contract was at 96.910 (3.090 per cent), down from 96.920 (3.080 per cent).