PWLB briefing
End of Day Wrap-Up
UK gilt yields rose modestly across the curve today, resulting in PWLB maturity rates closing 3–4bp higher and maintaining a broadly parallel upward shift.
GILT MOVE SUMMARY
- → 1y: 4.297% (+4bp) — front-end led the move higher.
- → 10y: 4.840% (+1bp) — belly saw a smaller increase.
- → 30y: 5.467% (+1bp) — long end moved marginally higher.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.20% | +3bp |
| 5y | 5.46% | +4bp |
| 10y | 5.92% | +4bp |
| 25y | 6.49% | +4bp |
| 50y | 6.29% | +4bp |
WHAT DROVE TODAY
- → No major UK economic data releases were scheduled today.
- → Market sentiment was influenced by ongoing geopolitical tensions in the Middle East, with oil prices remaining elevated and UK business surveys (Bank of England Decision Makers’ Panel) showing a sharp rise in inflation expectations for the year ahead.
- → Global risk aversion and higher energy costs were recurring themes in market commentary, but no single event clearly drove the move.
WHAT THIS MEANS
- → PWLB maturity rates finished 3–4bp higher, increasing borrowing costs for local authorities compared to yesterday.
- → The move was broadly parallel, with little change to the shape of the curve.
- → The increase reflects higher underlying gilt yields amid persistent inflation and geopolitical concerns.
NEXT ON THE DIARY
- → Calendar is light into the next business day.
PWLB borrowing costs ended the day modestly higher, reflecting a parallel move up in gilt yields amid ongoing geopolitical and inflation concerns.
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.