Key gauge of long-term euro zone inflation expectations renews slide

LONDON: A key gauge of the market's long-term expectations for euro zone inflation on Friday hit its lowest level in more than two years, renewing its downward push after weak economic data from the powerhouse German economy.

The five-year, five-year break even forward, a key market gauge tracked closely by the European Central Bank, fell to as low as 1.4332 percent. The ECB targets inflation at close to 2 percent.

The latest lurch down in market inflation expectations follows a dive in German 10-year government bond yields below zero percent for the first time since 2016. That followed a survey on Friday showing German manufacturing contracting for a third straight month.