The reduction was more pronounced at shorter maturities for both curves. Year on year inflation continues to fall and September RPI inflation came in at 1.7% while RPI inflation stood at 2.7%. Interest rate cuts are expected by the market, with a total 50bps cut expected over the two Bank of England meetings to year end. Over the quarter, non-financials corporate credit spreads have increased modestly albeit remaining at historic lows (note the z-spread shown is versus swaps).
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.