PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, resulting in a modest increase in PWLB borrowing rates.
GILT MOVE SUMMARY
- → 2y: 4.11% (+6bp) — front-end led the move higher.
- → 5y: 4.28% (+5bp) — short and intermediate yields rose in tandem.
- → 10y: 4.75% (+5bp) — belly moved broadly in line with the short end.
- → 30y: 5.41% (+4bp) — long end also higher, but with a slightly smaller increase.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.89% | +3bp |
| 5y | 5.17% | +2bp |
| 10y | 5.67% | +1bp |
| 25y | 6.29% | +1bp |
| 50y | 6.10% | +1bp |
WHAT DROVE TODAY
- → US inflation surprise: February PPI (MoM) came in at +0.70% (Forecast: +0.30%, Previous: +0.50%), reinforcing concerns about persistent inflation pressures.
- → Geopolitical risk: News of escalating conflict in Iran and a sharp rise in oil prices (Brent crude spiking to $110) contributed to global risk aversion and inflation concerns.
WHAT THIS MEANS
- → PWLB rates ended higher across all maturities, with the largest increases at the short end.
- → Borrowing costs for local authorities rose modestly, reflecting the move in underlying gilt yields.
- → Curve moves were parallel to slightly front-end led, with no major steepening or flattening.
NEXT ON THE DIARY
- → Thu 07:00: GBP Unemployment Rate (Forecast: 5.30%)
- → Thu 12:00: Bank of England Interest Rate Decision (Forecast: 3.75%)
Markets responded to a combination of inflation data and geopolitical headlines, leaving local authority borrowing costs moderately higher into tomorrow's key UK labour and central bank releases.
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.