The three-year bond futures rose as high as 95.750, up 0.25 points on the day, reaching highs not seen since July 2009. Interbank futures also rose strongly as some in the market again priced in the chance of an interest rate cut.

The move was encouraged by big losses in Asian stocks as worries about the health of the global economy mounted following Monday's sluggish manufacturing data.

Copyright Reuters, 2011