Eurozone: Key gauge of long-term inflation expectations hits 21-month tops above 1.40%

In a sign that the reflation trade is alive and kicking, a key gauge of long-term Eurozone inflation expectations rose above 1.40% for the first time since May 2019.

The 5-year, 5 years forward inflation swap rate, closely tracked by the European Central Bank (ECB), is at 1.405%, higher on the day by nearly 2bps.

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