PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, with the move most pronounced at the short end, resulting in a modest increase in borrowing costs, while PWLB rates ended the day slightly lower or unchanged due to the timing of their rate setting.
GILT MOVE SUMMARY
- → 1y: 4.364% (+5bp) — front-end led the rise.
- → 10y: 4.899% (+5bp) — belly moved in line with short end.
- → 30y: 5.505% (+3bp) — long end rose, but less than short maturities.
- → 50y: 5.067% (+2bp) — gains tapered further at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.18% | unch |
| 5y | 5.42% | -1bp |
| 10y | 5.86% | -1bp |
| 25y | 6.43% | -2bp |
| 50y | 6.23% | -2bp |
PWLB rates reflect the twice-daily reset and may lag intraday gilt moves.
WHAT DROVE TODAY
- → Geopolitical risk — Gilt yields rose in line with global rates as markets responded to heightened tensions in the Middle East, with oil prices elevated and news of US-imposed deadlines and military action around Iran.
- → UK data — S&P Global Services PMI missed expectations (Actual: 50.5 vs Forecast: 51.2, Previous: 53.9), but the impact was overshadowed by global risk sentiment.
WHAT THIS MEANS
- → PWLB rates — Ended the day slightly lower or unchanged, despite upward pressure in gilts, due to the timing of the rate resets.
- → Borrowing costs — Remain elevated, with only marginal relief at the long end.
- → Curve shape — Gilt curve steepened slightly, but PWLB moves were muted.
NEXT ON THE DIARY
- → 06:00 — Halifax House Price Index (MoM), forecast: +0.10%
- → 06:00 — Halifax House Price Index (YoY), forecast: +1.50%
- → 08:30 — S&P Global Construction PMI, forecast: 43.6
Markets remain sensitive to geopolitical headlines, with the next key UK data due tomorrow morning.
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.