PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, driving a broad-based decline in PWLB rates, with the front end leading the move lower.
GILT MOVE SUMMARY
- → 1y: 4.16% (-20bp) — pronounced front-end decline.
- → 5y: 4.26% (-20bp) — short and intermediate maturities fell in tandem.
- → 10y: 4.71% (-19bp) — belly of the curve saw significant declines.
- → 30y: 5.35% (-16bp) — long end also moved lower, but less than the front.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.04% | +4bp |
| 5y | 5.24% | unch |
| 10y | 5.70% | -1bp |
| 25y | 6.29% | -2bp |
| 50y | 6.09% | -1bp |
WHAT DROVE TODAY
- → Geopolitical relief — A two-week US-Iran ceasefire and partial reopening of the Strait of Hormuz triggered a global risk rally, with oil prices and volatility indices falling sharply.
- → UK data — Halifax House Price Index (MoM) missed expectations at -0.50% (Forecast: 0.20%, Previous: 0.30%), but had limited observable impact compared to the dominant geopolitical narrative.
WHAT THIS MEANS
- → PWLB rates ended lower across most maturities — reflecting the sharp drop in gilt yields, especially at the long end.
- → Short-dated PWLB rates diverged intraday — the 1y rate rose (+4bp) despite front-end gilt declines, due to the timing of PWLB rate setting relative to market moves.
- → Borrowing costs for local authorities — generally eased today, particularly for medium and long-term funding.
NEXT ON THE DIARY
- → Thu 08:30 — BOE Credit Conditions Survey (no forecast published)
- → Thu 09:00 — Mortgage Rate (Previous: 6.59%)
- → Thu 10:00 — Thomson Reuters IPSOS PCSI (Previous: 46)
Markets responded decisively to geopolitical developments, with borrowing rates for local authorities ending the day lower across most maturities.
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.