Australian bond futures have risen after Chinese data showed the world's second largest economy is slowing faster than expected.
ANZ senior economist Shane Lee said news China's annual growth rate slowed to 8.1 per cent in the March quarter, from 8.9 per cent in the previous quarter, pushed local bond prices higher.
Economists had forecast a growth rate of 8.4 per cent for the quarter.
"It was slightly less than expectations, so it definitely weighed on the market," he said.
However, he said other economic data released by China's National Bureau of Statistics painted a more positive picture.
Retail sales rose 15.2 per cent in first three months of 2012 while industrial production was up 11.9 per cent for the same period.
"The GDP figure was weaker, but the data was pretty mixed overall," he said.
China is Australia's largest trading partner and a slowdown in growth there could have significant implications for Australian exports.
Mr Lee said the next significant event for the market would be Tuesday's release of the minutes of the Reserve Bank of Australia's (RBA) most recent board meeting.
The RBA opted to keep the cash rate on hold in April but, in a statement accompanying its decision, flagged a likely cut in May, provided domestic consumer price index (CPI) data, to be released later this month, shows inflation is under control.
"At the last meeting the RBA indicated a rate cut in May was pretty much a done deal but we will be looking for a bit more clarity on that (in the minutes)."
At 1700 AEST on Friday, the June 10-year bond futures contract was trading at 96.220 (implying a yield of 3.780 per cent), up from Thursday's close of 96.150 (3.850 per cent.)
The June three-year bond futures contract was at 96.770 (3.230, up from 96.690 (3.310 per cent).
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