End of Day Wrap-Up

UK gilt yields declined across the curve today, resulting in lower PWLB rates at all maturities.

GILT MOVE SUMMARY

• 1y: 3.680% (-3bp) — Declines led by the front end.
• 5y: 3.930% (-4bp) — Short and intermediate tenors moved lower in parallel.
• 10y: 4.441% (-4bp) — Belly of the curve mirrored front-end moves.
• 30y: 5.156% (-3bp) | 50y: 4.736% (-2bp) — Long end also lower, but with slightly smaller moves.

PWLB CLOSE SNAPSHOT

• 1y: 4.62% (-4bp)
• 5y: 4.92% (-3bp)
• 10y: 5.48% (-3bp)
• 25y: 6.13% (-3bp)
• 50y: 5.95% (-2bp)

WHAT DROVE TODAY

• No high-impact UK economic data released today; only final Services PMI (Actual: 53.9, Forecast: 53.9, Previous: 54) and Composite PMI (Actual: 53.7, Forecast: 53.9, Previous: 53.7), both low impact and broadly in line with expectations.
• Market commentary focused on ongoing geopolitical risks (Middle East conflict, global energy supply concerns) and the announcement of imminent US tariff increases, but no direct evidence linked these themes to today’s modest gilt rally.
• Overall, the decline in yields appears to have occurred in the absence of a clear domestic catalyst.

WHAT THIS MEANS

• PWLB rates ended lower across all maturities, with the largest moves at the short end.
• Borrowing costs for local authorities fell modestly today, reflecting the parallel shift lower in gilt yields.
• Long-dated rates also declined, though by a slightly smaller margin than shorter maturities.

NEXT ON THE DIARY

• Tomorrow 09:30: GBP S&P Global Construction PMI (MED impact) — Forecast: 47 (Previous: 46.4)
• Other scheduled releases are low impact.

PWLB borrowing costs eased modestly today, with no single domestic event driving the move.

This commentary is provided for informational purposes only and should not be construed as financial advice. Market conditions can change rapidly, and you should always verify current rates directly with the PWLB or through official channels before making borrowing decisions. Past performance is not indicative of future results.