PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, leading to a corresponding increase in PWLB rates for all standard maturities.
GILT MOVE SUMMARY
- → 2y: 4.310% (+7bp) — front-end led the move higher.
- → 10y: 4.869% (+5bp) — belly followed, with moderate upward pressure.
- → 30y: 5.517% (+4bp) — long end also higher, but with a slightly smaller increase.
- → 50y: 5.070% (+2bp) — gains tapered at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.12% | +2bp |
| 5y | 5.39% | +3bp |
| 10y | 5.88% | +3bp |
| 25y | 6.47% | +2bp |
| 50y | 6.28% | +3bp |
WHAT DROVE TODAY
The upward move in gilt yields was driven by heightened geopolitical risk and energy market disruption. News flow was dominated by the US announcement of a blockade of the Strait of Hormuz, which pushed oil prices above $100 and triggered a broad risk-off move in global markets. UK-specific economic data was absent, and the only major release globally was US Existing Home Sales (Actual: 3.98M, Forecast: 4.07M, Previous: 4.13M), which had little direct impact. The main catalyst was the escalation in Middle East tensions and associated inflation concerns.
WHAT THIS MEANS
- → Borrowing costs for local authorities increased by +2bp to +3bp across all standard PWLB maturities.
- → The rise was most pronounced at the short and intermediate end, but all tenors moved higher.
- → The move reflects global risk aversion and inflation concerns rather than domestic data.
NEXT ON THE DIARY
- → 23:01 (Tue): GBP BRC Retail Sales Monitor (YoY) — Forecast: 0.90%
- → 08:50 (Tue): GBP BoE MPC Member Mann Speaks
- → 16:00 (Tue): GBP BoE Gov Bailey Speaks
PWLB rates ended the day higher, reflecting increased market volatility and risk sentiment linked to geopolitical developments.
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.