PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, leading to a broad-based decline in PWLB maturity rates.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 2y | 4.41% | -8bp |
| 5y | 4.43% | -9bp |
| 10y | 4.84% | -11bp |
| 30y | 5.44% | -15bp |
| 50y | 5.02% | -13bp |
Declines were led by the long end, with 30y and 40y yields down by more than -14bp, while the short end also saw significant moves.
PWLB CLOSE SNAPSHOT
- → 1y — 5.21% (unch)
- → 5y — 5.39% (-2bp)
- → 10y — 5.84% (-2bp)
- → 25y — 6.41% (-3bp)
- → 50y — 6.22% (-2bp)
WHAT DROVE TODAY
The sharp decline in gilt yields occurred despite UK CPI data coming in exactly on forecast at 3.0% year-on-year (Actual: 3.0%, Forecast: 3.0%, Previous: 3.0%). Other inflation and producer price releases were mixed but generally softer than previous readings. The dominant driver appears to have been a global rally in government bonds, with news flow highlighting a drop in oil prices and renewed hopes for US-Iran diplomacy. Multiple reports cited falling oil and reduced market volatility as key factors supporting lower yields internationally. No single domestic event was directly responsible for the scale of the move.
WHAT THIS MEANS
- → Borrowing costs for local authorities fell across all maturities, with the largest reductions at the long end.
- → The 10–50y PWLB rates ended 2–3bp lower, reflecting the pronounced move in long gilts.
- → The curve remains steep, but today's move was directionally lower across all points.
NEXT ON THE DIARY
- → Tomorrow 09:30: GBP BoE Breeden Speaks (LOW)
Gilt and PWLB rates closed the day lower, with moves driven by global factors and oil price declines rather than domestic data surprises.
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.