Pinned Higher Despite Strong Retail Sales, Broader Risk-Off Driven

No reaction in the space to the much firmer than expected domestic retail sales data, with focus squarely on the risk-off dynamic centred on the new, aggressive COVID variant. That leaves YM +5.5 and XM +8.0 as of typing. Within the details of the retail sales release, the ABS noted the following: "Retail performance continues to be tied to state lockdowns as this month's recovery was driven by the end of lockdowns in New South Wales, Victoria and the Australian Capital Territory. With lockdown ending on October 11, New South Wales sales rose 13.3% returning to the levels seen in the months immediately prior to the Delta outbreak, while Victoria and the Australian Capital Territory remain below pre-Delta levels. Although sales have bounced back strongly following the end of lockdowns, it is important to note that overall retail turnover has not yet reached the level of May 2021, the month prior to the Delta outbreak."