Locked In On RBA

Aussie bonds were willing to operate in narrow ranges, even as RBA board member Harper flagged the potential for further easing (as the rhetoric deployed was in tune with what we have heard from RBA Governor Lowe, among others), while domestic Q3 CPI was never going to move the goal posts for the RBA. YM closed -0.5, XM +2.0, holding flatter after the latter extended above its SYCOM range in early Sydney dealing on risk-off news flow re: European COVID matters.

• Swaps were generally biased marginally wider across the curve for most of the session (expectations re: the outline of a broader round of bond buying at next week's RBA decision is likely the explanatory factor here).
• Elsewhere, Australian PM Morrison downplayed talk that the Australian economy is out of recession, pointing to a long road back and the need for gov't support of the labour market.
• Bills finished unchanged to -1.