PWLB briefing
End of Day Wrap-Up
Long-dated gilt yields rose notably today, steepening the curve and resulting in a modest decline in PWLB rates across the maturity spectrum.
GILT MOVE SUMMARY
- → 2y: 4.22% (unch) — front end stable.
- → 10y: 4.85% (+2bp) — moderate upward move in the belly.
- → 20y: 5.49% (+7bp) — long end led the move higher.
- → 30y: 5.57% (+9bp) — largest increase, accentuating curve steepening.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.02% | -2bp |
| 5y | 5.29% | -2bp |
| 10y | 5.80% | -1bp |
| 25y | 6.42% | -1bp |
| 50y | 6.20% | -1bp |
WHAT DROVE TODAY
There was a clear steepening in the gilt curve, with long-dated yields rising by up to (+9bp) while the short end was largely unchanged. UK economic data released this morning was mixed: monthly GDP (MoM) surprised to the upside at 0.50% (Forecast: 0.10%, Previous: 0.10%), but manufacturing production (MoM) missed at -0.10% (Forecast: 0.30%). No major UK-specific news or global headlines were directly linked to the pronounced move in long gilts, and no Bank of England speakers made market-moving comments during the session. The drivers behind the long-end sell-off remain unclear based on available evidence.
WHAT THIS MEANS
- → PWLB rates ended modestly lower across all maturities, despite the sharp rise in long gilt yields.
- → The cost of new borrowing via PWLB is fractionally cheaper than yesterday, with reductions of (-1bp) to (-2bp) depending on tenor.
- → The curve steepened, but this was not fully reflected in PWLB rates due to the timing of rate setting.
NEXT ON THE DIARY
- → Fri 13:00: BoE MPC Member Pill Speaks (MEDIUM)
PWLB rates remain closely linked to gilt market movements and will continue to reflect any further shifts at the next rate setting.
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.