We present high-resolution spectroscopy of Iodine vapour that is loaded and trapped within the core of a hollow-core photonic crystal fibre (HC-PCF). We compare the observed spectroscopic features to those seen in a conventional iodine cell and show that the saturation characteristics differ significantly. Despite the confined geometry it was still possible to obtain sub-Doppler features with a spectral width of ~6 MHz with very high contrast. We provide a simple theory which closely reproduces all the key observations of the experiment.