German Breakeven Rate Shows Green Shoots in the Euro-Area Economy

German Breakeven Rate Shows Green Shoots in the Euro-Area Economy

(Bloomberg) -- A measure of inflation expectations in Germany is increasing, following the European Central Bank’s latest round of policy easing. The 10-year German breakeven rate, which reflects investors’ expectations of consumer prices in the future, has increased to above 1 percent. That signals investors are growing more confident that ECB stimulus, which includes a new batch of long-term loans for banks, should help stabilize the euro zone’s flagging economy.

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