The Week Ahead

• China Manufacturing PMI (Feb)
• RBA Rate Statement
• U.S Nonfarm Payrolls & Unemployment Rate (Feb)

Thought Of The Week Inflation Jitters, Fed Chair Jerome Powell Testifies The 10-year U.S Treasury yield touched 1.6085% on Thursday, the highest since last February on an increased conviction that the economy will recover rapidly. The recent surge in commodity prices due to the cold weather in the U.S and the potential pullback in monetary policy support added to the fears of an accelerating inflation. Tech-heavy index Nasdaq, which had benefitted largely from the low discount rate environment sold off heavily before Federal Reserve Chair Jerome Powell pushed back on inflation concerns during his second day of Congressional testimony. He reassured markets that rates are likely to stay low as the recent signs of rising prices will not lead to persistently high inflation and the labour market is still far from its employment target....