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Bonds flat after big week of data

Australian bond futures prices are flat as the market consolidates after a big week of economic data and anticipates the release of US job figures.

At 1630 AEDT on Friday, the December 10-year bond futures contract was at 96.955 (implying a yield of 3.045 per cent), steady from Thursday.

The December three-year bond futures contract was trading at 97.400 (2.600 per cent), also steady from Thursday.

Deutsche Bank fixed income strategist David Plank said the market had little to react to because of a lack of significant local data on Friday.

He said there was a lot happening this week, with the Reserve Bank of Australia rate cut on Tuesday, September quarter economic growth figures on Wednesday and November employment data on Thursday.

"It's a lot for the market to digest," Mr Plank said.

"Today was always going to be a day of consolidation ahead of more big news tonight in the form of the US employment report."

US non-farm payrolls data for November will be released on Friday night (AEDT).

Mr Plank said he expected the market would ignore the figures because they would be heavily influenced by the effect of Hurricane Sandy.

"We're looking for very weak data, but I don't think you can read anything into that because it's going to be heavily impacted by the hurricane," he said.

He said bond prices were unlikely to move significantly until US legislators had agreed on a resolution to the so-called fiscal cliff.

This referred to the expiry of a range of tax cuts and spending measures that are likely to send the US back into recession.

"The fiscal cliff is the focus," he said.