Commensurate with this, inflation expectations fell across the curve by c.50bps. The Bank of England did not change the base rate over the quarter. This was in line with market expectations.
UK Market Monitor Q1 2024
Real and nominal Gilt yields both increased over the quarter. Real yields averaged an increase of circa 15 bps, while nominal yields increased by circa 30bps. This led to a commensurately higher break-even inflation rate.