Australian bond prices firm despite strong China data

Australian bond futures prices are higher despite a better than expected measure of Chinese manufacturing activity. Prices rose ahead of the data on expectations of further weakening in activity, due to concerns of softer growth in the world's second largest economy. 'There were larger moves in Australian interest rates reflecting the impact from concerns over China,' St George senior economist Janu Chan said. While HSBC's preliminary purchasing managers index (PMI) hit a two-month high of 50.5 in September, economists still warned a slowdown in the key property sector was an ongoing risk to growth. At 1630 AEST on Tuesday, the December 2014 10-year bond futures contract was trading at 96.410 (implying a yield of 3.590 per cent), up from 96.310 (3.690 per cent) on Monday. The December 2014 three-year bond futures contract was at 97.190 (2.810 per cent), up from 97.110 (2.890 per cent), according to skynews.com