Similarly, real yields have decreased for tenors below 5 years and increased by 10-20 basis points for longer tenors.
Year-on-year RPI and CPI have been falling since the significant increase in January. CPI has decreased to 2.6% from the calendar high of 3% in January, and RPI has decreased to 3.2% from the January high of 3.6%.
Market expectations for interest rate cuts in 2025 have increased from the previous quarter, with a greater than 50% chance of four or more 25bps cuts by the end of the calendar year.
Credit spreads continue to widen across all ratings, with a uniform increase of 15-20 basis points during 2025.
