The stronger US data, coupled with a positive global outlook, resulted in the weakening of the Australian bond market on Friday.

Stephen Roberts, chief economist of Nomura Australia says the bond responded to the increasing confidence of people in the US economy, an outlook which may even be sustained in the next couple of years as “reflected in the way the equity market has improved over the last couple of nights."

Mr. Roberts added that the “overnight sell off of Australian bonds was not as great in the US.”

The December 10-year bond futures contract was reflected to go down at 0830 AEDT on the ASX 24 from 94.495 or 5.430 percent from Thursday’s 94.570.

The December three-year bond futures contract, on the other hand, was down to 94.990 (5.010 per cent) from Wednesday’s 95.030 (4.970 per cent).

Thursday closed with Wall Street posting two straight days of sustained gains buoyed by increased sales in the US home and retail markets as the Christmas season starts.

Overall, the global stocks markets receive a boosting shot from the European Central Bank’s continuous efforts to aid the eurozone economy with the extension of its stimulus measures.