The Australian bond market has closed mixed as investors preempt more poor economic data in the US and buy fixed-income assets.
At 1630 AEDT, the yield on the Commonwealth Government March 2019 bond was at 3.955 per cent, down from Wednesday's close of 3.983 per cent, while the yield on the June 2011 bond was at 3.050 per cent, slightly up from 3.045 per cent.
On the Sydney Futures Exchange, the March 10-year bond futures contract price was 96.030, up from Wednesday's close of 96.005, while the March three-year bond futures contract price was 96.705, down from 96.720.
ICAP senior economist Adam Carr said the local bond market started the first session of 2009 weaker, but firmed as the day progressed in thin trading.
"It opened up with some selling off, but there has been a sizeable rally on the day," he said.
"You have to remember that volumes are pretty light, the market is thin and it does not take much to move things in this environment."
Mr Carr said some investors were preempting the expected release of a poor US Institute for Supply Management (ISM) index for December during Friday's offshore session.
The market median's forecast was for the ISM to fall to 35.4 index points in December, from 36.2 points the month before.
A reading below 50 points indicates a contraction in activity.
"The expectation for that is to be pretty weak," Mr Carr said.
"What this is realistically is one or two punters just preempting the ISM tonight and they are taking a position."
A measure of Australian manufacturing improved slightly, but activity in the sector was still contracting.
The Australian Industry Group-PricewaterhouseCoopers Australian Performance of Manufacturing Index (PMI) rose one index point in December, to 33.7 points.
While a slender improvement from the survey's record low the previous month, the index remained below the key 50 level which separates expansion from contraction.
