Europe’s Low Yields Are Here to Stay as Inflation Outlook Turns
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The outlook for euro-area inflation is souring and that suggests record-low yields on the region’s government bonds aren’t going away anytime soon.
Forget the debate over when the Federal Reserve will raise interest rates, disregard how soon after that the Bank of England will move, yields in the euro area are likely to remain subdued as the region fends off disinflationary pressures.