LONDON, March 12 (Reuters) - A key market gauge of long-term euro zone inflation expectations in the euro area hit a new record low on Thursday, pushing further below 1% ahead of a European Central Bank meeting.
The collapse in inflation expectations is a worrying sign for the ECB, which targets inflation at close to 2%.
Analysts say the fall in five-year, five-year breakeven forwards suggests investors are positioning for deflation risks.
The breakeven forward, followed closely by the ECB, fell as low as 0.8866%. It has slid around 20 basis points in the past week alone in the face of the coronavirus outbreak and a crash in oil prices. (Reporting by Dhara Ranasinghe; editing by Sujata Rao)