PWLB briefing
Afternoon Rate Update
⚠ VOLATILITY ALERT — PWLB fixed rates reset sharply higher at the PM fix, with moves of +5bp to +12bp across the curve, driven by a surge in gilt yields as energy-driven inflation fears and UK borrowing data hit markets.
PWLB PM rates reset at 12:10 with significant increases across all maturities, reflecting a marked repricing in response to market volatility and inflation concerns.
PWLB PM SNAPSHOT
- → 1y: 5.33% (+12bp)
- → 3y: 5.43% (+11bp)
- → 5y: 5.52% (+9bp)
- → 10y: 5.92% (+7bp)
- → 25y: 6.46% (+5bp)
- → 50y: 6.27% (+6bp)
WHAT'S NEW SINCE THIS MORNING
- → Front end leads: 1y and 3y up +12bp and +11bp, with the 5y up +9bp.
- → Belly and long end: 10y up +7bp, 25y +5bp, 50y +6bp—broad-based repricing, but largest moves at the short end.
CONTEXT
- → UK borrowing shock: February PSNB ex-banks printed at £14.3bn (vs £8.5bn forecast), with multiple headlines highlighting the highest government borrowing costs since 2008.
- → Energy-driven inflation fears: News flow dominated by surging oil and gas prices, Middle East supply disruptions, and warnings of higher UK household energy bills and revived inflation risk.
- → Global bond rout: Gilt yields and global rates have moved sharply higher as markets price in persistent inflation and potential further central bank tightening.
LOOK AHEAD
Diary is light into tomorrow.
A turbulent session for gilts has fed directly into PWLB rates, with the front end hit hardest; no major data due until Monday.
This commentary is provided for information only and is not financial advice. Please verify rates directly with PWLB or official sources before acting.
Gilt Edge Advisor — If you blinked, you missed the calm. See you on the next reset.