However, the 5Y, 12Y and 20Y fell by 24bps, 30bps and 21bps, respectively. At the longer end, the 30Y nominal yield only fell by 8bps.
CPI inflation remained elevated through the quarter, with February CPI at 10.4%. Despite the falls in utility and fuel prices inflation is expected to feel “sticky” for much of the year. Given resilient economic conditions, there is a possibility of bank rates rising further in the near term to 4.50% from the 4.25%.
Over the quarter, the nominal gilt curve has shifted down by around 25 basis points across the medium to longer maturities.
A broadly parallel upward shift of approximately 20 basis points is evident across the nominal gilts curve, with yields reaching multi-year highs.
AlphaReal, the specialist real assets investment manager, is pleased to announce the acquisition of a fully consented 12MWp solar development, located near Arbroath, Scotland.
The short-term nominal curve shows a decrease in yields for tenors under 20 years, while remaining relatively flat at the longer end of the curve.