European inflation sizzle set to fizzle

Eurozone inflation leapt up in January, steepening curves and fuelling feverish demand for long-end bond issues. But the move lacks the vigour and commitment of the US reflation trade and economists expect it to subside later in the year. As Lewis McLellan reports, with no prospects of higher rates, investors will be pushed into longer and longer debt maturities as they attempt to lock in positive yields.