PWLB briefing
End of Day Wrap-Up
Gilt yields fell sharply across the curve today, leading to a broad-based decline in PWLB rates by the afternoon reset.
GILT MOVE SUMMARY
- → 2y: 4.11% (-8bp) — declines led by the front end.
- → 10y: 4.76% (-10bp) — belly saw the largest move lower.
- → 30y: 5.48% (-9bp) — long end followed the downward move.
- → 50y: 5.04% (-5bp) — smaller but still material decline at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.03% | unch |
| 5y | 5.32% | -1bp |
| 10y | 5.85% | -1bp |
| 25y | 6.49% | -2bp |
| 50y | 6.28% | -2bp |
WHAT DROVE TODAY
- → Geopolitical de-escalation: News that Iran has reopened the Strait of Hormuz and that a ceasefire is holding in the Middle East drove a sharp fall in global oil prices and a rally in government bonds.
- → No major UK data releases: The economic calendar was light, with only a Bank of England MPC member speech (Pill) and no new UK macro data.
WHAT THIS MEANS
- → PWLB rates fell by 1–2bp across most maturities, reflecting the broad-based decline in gilt yields.
- → Borrowing costs for local authorities ended the week lower, with the largest reductions seen in the 20–50 year area.
- → The move was driven by external geopolitical developments, rather than domestic economic data.
NEXT ON THE DIARY
- → Tuesday 07:00: UK labour market data — Employment Change, Average Earnings, Unemployment Rate (MEDIUM).
Markets closed the week with lower borrowing rates, as geopolitical relief outweighed domestic factors.
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.