Australia’s 10-year government bond yield held around 5.2%, trading close to multi-week lows as investors continued to assess developments on the monetary policy outlook. RBA Deputy Governor Andrew Hauser said tighter monetary policy was working, but warned that the inflation outlook remained “materially worse” partly due to elevated oil prices. Hauser stressed the need to anchor inflation expectations ahead of the RBA’s November 3 policy meeting, where policymakers will consider whether to raise rates for a fifth time this year. However, he also acknowledged that higher interest rates and fuel costs were slowing the economy. Markets subsequently raised the probability of a November hike to 44% chance from 30% at the start of the week, while the odds of a December move had climbed to 64%. Focus now turns to third-quarter inflation data due next week. Core inflation is expected to rise 1.0% from 0.9% previously, keeping the annual pace at 3.5%, well above the RBA’s target range.