LONDON, April 23 (Reuters) - A key market gauge of long-term inflation expectations in the United States hit its highest level in 3-1/2 years on Monday, Reuters data showed.
The U.S. five-year, five-year inflation swap touched 2.5385 percent in early European trade for the first time since November 2014.
A surge in oil prices to around $74 a barrel has boosted inflation expectations across the world and pushed government bond yields higher, particularly in the United States.
"Inflation in the U.S. is more sensitive to oil prices than many other regions so it makes sense for inflation expectations to rise there," said Mizuho strategist Antoine Bouvet.
The yield on 10-year U.S. Treasuries were within touching distance of 3 percent on Monday for the first time since January 2014. (Reporting by Abhinav Ramnarayan; editing by Sujata Rao)