UK Market Monitor Q3 2023

Over the quarter, long dated Real and Nominal Gilt yields increased by at least c.30bps, for the longest maturities the increase was as high as c.50bps.

Inflation expectations have not materially changed versus the previous quarter, hence the higher yields are driven by higher real yields as opposed to higher inflation.

Inflation has continued to decrease in Q3 albeit still significantly higher than the Bank of England’s 2% target for CPI.

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