Australian bond futures prices are firmer after China's banking regulator ordered more stringent credit checks on the country's coal mining industry.
China's Banking Regulatory Commission on Friday afternoon issued default alerts to banks on risky industries, according to media reports.
Commonwealth Bank interest rate strategist Philip Brown said Australian bond futures prices rallied on the reports coming out of Australia's biggest trading partner.
"A lot of our exports become their imports," he said.
"When they're not growing as quickly, it doesn't help our economy at all."
The news comes a day after a preliminary report from HSBC showed Chinese manufacturing activity falling to a six-month low in January.
"The Chinese economy has been growing moderately and ... I'm not yet concerned about its impact on the Australian economy," Mr Brown said.
At 1630 AEDT on Friday, the March 2014 10-year bond futures contract was trading at 96.010 (implying a yield of 3.990 per cent), up from 95.880 (4.120 per cent) on Thursday.
The March 2014 three-year bond futures contract was at 97.150 (2.850 per cent), up from 97.000 (3.000 per cent).