In contrast, the yield for the real curve has shifted upwards across all tenors by 5-15bps. Year-on-year inflation prints increased this quarter with CPI increasing 1%pt from 2.6% in March to 3.6% in June and RPI increasing 1.2%pt from 3.2% to 4.4% over the same period. Market expectations for interest rate cuts in 2025 have decreased from the previous quarter. Credit spreads have decreased from the end of Q1 to Q2 by 15-20 basis points across AA, A, BBB ratings.
Over the quarter, the nominal gilt yield curve shifted lower, falling by approximately 15 basis points (bps) at the short end and around 5bps at the long end.
Over the quarter, the nominal gilt curve has shifted up by around 50 basis points (0.50%) on average across all maturities.
We are thrilled to share that AlphaReal has been shortlisted for ESG Manager of the Year for the 2026 UK Pensions Awards.
Over the quarter, the nominal gilt curve has shifted down by around 25 basis points across the medium to longer maturities.