End of Day Wrap-Up

UK gilt yields fell notably across the curve today, leading to modest declines in most PWLB maturity rates.

GILT MOVE SUMMARY

• → 2y: 4.05% (-5bp) — front-end led declines.
• → 10y: 4.69% (-8bp) — belly saw largest move.
• → 30y: 5.37% (-7bp) — long end followed lower.
• → Curve shape: Parallel shift lower, with the 5–20y sector leading.

PWLB CLOSE SNAPSHOT

• → 1y: 4.88% (+1bp)
• → 5y: 5.21% (-1bp)
• → 10y: 5.73% (unch)
• → 25y: 6.35% (unch)
• → 50y: 6.15% (-1bp)

WHAT DROVE TODAY

There were no UK economic data releases or scheduled events today. The decline in gilt yields occurred alongside ongoing geopolitical tensions in the Middle East, with multiple headlines highlighting the impact of the Iran war on global energy prices and inflation concerns. However, there is no direct evidence in the news flow or calendar of a single catalyst for today's move; the shift appears to reflect broader risk sentiment and global developments rather than a UK-specific trigger.

WHAT THIS MEANS

• → Most PWLB rates ended the day slightly lower, particularly in the 5y and longer tenors.
• → Short-dated PWLB rates were little changed or marginally higher, while the 10y and 25y rates were unchanged.
• → Overall, borrowing costs for local authorities eased modestly at the long end, with the front end broadly steady.

NEXT ON THE DIARY

• → Thursday 07:00: GBP ILO Unemployment Rate (HIGH) — Forecast: 5.3%
• → Thursday 07:00: GBP Avg Earnings (Ex-Bonus) (MEDIUM) — Forecast: 4.0%
• → Thursday 07:00: GBP Employment Change (MEDIUM) — Forecast: -4K

Markets will now look to Thursday's UK labour market data for the next potential catalyst.

This commentary is for information only and does not constitute financial advice. Always verify rates directly with PWLB or official sources before making borrowing decisions.