The market-based measures of inflation expectations in the US and Eurozone have declined to record lows amid the even increasing fears of a coronavirus-led recession in the global economy.
The Eurozone five year, five-year inflation swap has dropped to 0.75% while its US counterpart has slipped to 1.25%, as noted by macro analyst Holger Zschaepitz.
The Federal Reserve injected massive amounts of liquidity into the system in the last two weeks. The European Central Bank also announced a Pandemic Emergency Purchase Programme worth EUR 750 billion. So far, however, the stimulus measures have failed to calm markets.