PWLB briefing
End of Day Wrap-Up
Gilt yields ended the day modestly higher across most maturities, resulting in a parallel increase in PWLB rates.
GILT MOVE SUMMARY
- → 2y: 4.49% (-6bp) — front-end yields declined, diverging from longer maturities.
- → 10y: 4.98% (-2bp) — belly of the curve saw a small decline.
- → 30y: 5.59% (+1bp) — long-end yields were marginally higher.
- → Curve shape — modest steepening, with short yields falling and longer yields flat to slightly up.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.37% | unch |
| 5y | 5.65% | +3bp |
| 10y | 6.08% | +4bp |
| 25y | 6.63% | +4bp |
| 50y | 6.44% | +4bp |
WHAT DROVE TODAY
- → UK economic data was limited to retail sales, which came in mixed: Retail Sales (YoY) at 2.50% (Forecast: 2.10%, Previous: 4.80%), and Retail Sales (MoM) at -0.40% (Forecast: -0.60%, Previous: 2.0%).
- → Broader market sentiment was dominated by ongoing geopolitical tensions in the Middle East, with multiple news sources highlighting the impact of the Iran war on oil prices and global risk appetite.
- → No single domestic event clearly drove the modest parallel rise in PWLB rates; moves appear to reflect global risk and inflation concerns.
WHAT THIS MEANS
- → PWLB rates finished the day 3–4bp higher across most maturities, with the exception of the 1y rate, which was unchanged.
- → The cost of new long-term borrowing is now at its highest level in recent weeks.
- → The move reflects a modest increase in funding costs for local authorities compared to yesterday.
NEXT ON THE DIARY
- → Monday 08:30 — Mortgage Approvals, M4 Money Supply, BoE Consumer Credit, Mortgage Lending, M3 Money Supply, Net Lending to Individuals (all LOW impact)
- → Next HIGH/MEDIUM event: Tuesday 06:00 — GDP (QoQ, YoY), Business Investment, Current Account, Nationwide HPI
PWLB rates closed higher in parallel with modest upward pressure in longer gilt yields, amid a backdrop of geopolitical risk and mixed UK data.
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.