PWLB briefing
End of Day Wrap-Up
Gilt yields rose modestly across the curve today, resulting in small upward moves in most PWLB maturity rates.
GILT MOVE SUMMARY
- → 2y: 4.22% (+3bp) — modest upward shift at the front end.
- → 10y: 4.81% (+3bp) — belly moved in line with the short end.
- → 30y: 5.49% (+4bp) — long end saw slightly larger gains.
- → 40y: 5.47% (+5bp) — largest move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.05% | +1bp |
| 5y | 5.30% | unch |
| 10y | 5.79% | unch |
| 25y | 6.40% | unch |
| 50y | 6.18% | -1bp |
WHAT DROVE TODAY
No single domestic data release or policy event was directly linked to today’s moves. The broader backdrop remains dominated by ongoing geopolitical tensions in the Middle East, with commentary highlighting the impact of the US-Iran conflict on oil prices and global inflation expectations. Bank of England Governor Bailey spoke today, reiterating the resilience of the UK banking system amid what he described as a “major supply shock,” but did not signal any immediate policy changes. There were no significant UK economic data releases today; the next major domestic data is due tomorrow morning.
WHAT THIS MEANS
- → Most PWLB rates ended the day little changed, with only minor increases at the short end and a small decrease at 50y.
- → Borrowing costs for local authorities remain close to recent highs, with only marginal day-on-day adjustments.
- → The overall yield curve remains elevated and broadly stable, reflecting persistent geopolitical and inflation risks.
NEXT ON THE DIARY
- → Thu 07:00 — UK GDP (MoM) (HIGH): Forecast 0.10% (Prev 0.0%)
- → Thu 07:00 — UK Manufacturing Production (MoM) (MEDIUM): Forecast 0.30% (Prev 0.10%)
- → Thu 07:00 — UK Industrial Production (MoM) (MEDIUM): Forecast 0.30% (Prev -0.10%)
PWLB rates remain closely aligned with gilt market movements, with no significant divergence observed today.
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.