Australia’s 10-year government bond yield fell below 5.2%, hitting a fresh seven-week low as investors braced for the upcoming third quarter inflation figures. The report is due Wednesday, with core inflation expected to rise by a sharp 1.0%, keeping the annual rate at 3.6%, well above the Reserve Bank of Australia’s 2%–3% target range. A stronger reading could bolster the case for a fifth rate hike this year. RBA Governor Michele Bullock and other senior officials are also scheduled to appear before lawmakers as the data is released, putting them under pressure to respond to the latest inflation figures and their implications for the policy outlook. Markets imply a 66% chance of a quarter-point hike to 4.85% at the November 3 meeting, though the move is widely expected to be the peak of the cycle. Despite the hawkish rate outlook, volatility in equity markets and heightened geopolitical tensions in the Middle East sustained safe-haven demand for bonds, keeping yields subdued.