A Touch Flatter Ahead Of Supply & RBA SoMP

Futures flattened a touch overnight, with YM unch. and XM +2.0 at typing, roughly in line with late overnight levels.

• In an evening speech RBA Deputy Governor Debelle outlined the suite of stimulus measures deployed by the RBA since the onset of the COVID crisis, while underscoring the Bank's commitment to ultra‑loose monetary policy settings. Debelle concluded with the following statement "at the May Board meeting earlier this week, the Board reiterated that in its central scenario, these conditions are unlikely to be met until 2024 at the earliest. This complements the 3-year government bond yield target and has helped underpin the low level of interest rates across the economy. But I would highlight that it is the state of the economy that is the key determinant of policy settings, not the calendar." Reminding us that the economic state is the driver of monetary policy, as opposed to outright forward guidance.
• The release of the RBA's SoMP headlines the local docket today. Elsewhere, A$800mn of ACGB 0.25% 21 November 2024 supply and the release of the AOFM's weekly issuance slate are due. Further afield, the latest Chinese Caixin services PMI and monthly Chinese trade data headline during Asia-Pac hours, although the proximity to the NFP release may lift the hurdle re: the ability of those releases to have an impact on the broader financial markets.