Australian bond futures prices have extended their gains after the release of weak business investment figures on Thursday.
Investors started to flee to safe haven assets, like bonds, on Thursday after official figures showed capital expenditure fell 5.2 per cent in the December quarter, worse than market expectations of a one per cent fall.
Analyst said the figures showed that Australia's mining investment boom has peaked.
Westpac senior market strategist Damien McColough said the bond market had another strong session as traders shied away from riskier assets.
"That follows on from a very strong day yesterday," he said.
"There's been reduction of risk and there's been good volumes.
"The market did their initial rally yesterday and now looked at it and realised there are some who aren't as confident that the Reserve Bank of Australia won't cut the cash rate."
Mr McColough said RBA credit growth figures came in as expected and also gave the bond market rally a bit of a push.
The RBA said the value of credit outstanding to the private sector rose 0.4 per cent in January.
"It was one of those days where the bond market was strong," he said.
At 1630 AEDT on Friday, the March 2014 10-year bond futures contract was trading at 96.035 (implying a yield of 3.965 per cent), up from 96.000 (4.000 per cent) on Thursday.
The March 2014 three-year bond futures contract was at 97.140 (2.860 per cent), up from 97.120 (2.880 per cent).