PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, resulting in modest increases in PWLB rates at most key maturities.
GILT MOVE SUMMARY
- → 2y: 4.17% (+7bp) — front-end led the move higher.
- → 10y: 4.84% (+7bp) — belly and long end both saw similar upward pressure.
- → 30y: 5.57% (+9bp) — long end underperformed, steepening the curve.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.00% | +1bp |
| 5y | 5.29% | +1bp |
| 10y | 5.83% | +1bp |
| 25y | 6.47% | unch |
| 50y | 6.27% | unch |
WHAT DROVE TODAY
No significant UK economic data was released today. The move in gilts tracked a global sell-off in government bonds, with news flow dominated by renewed tensions in the Middle East. Reports of Iran reasserting control over the Strait of Hormuz, US military actions, and resulting oil price spikes were widely cited as drivers for higher yields globally. There was no evidence of domestic data or policy developments influencing UK rates today.
WHAT THIS MEANS
- → PWLB rates ended modestly higher — most key maturities rose by +1bp, reflecting the upward move in gilts.
- → Longer-dated PWLB rates were steady — 25y and 50y maturities closed unchanged despite steeper moves in long gilts.
- → Borrowing costs remain elevated — today's moves keep rates near recent highs, with volatility driven by geopolitical headlines.
NEXT ON THE DIARY
- → Tue 07:00 — UK Employment Change 3M/3M (Prev: 84K)
- → Tue 07:00 — UK Average Earnings Index +Bonus (F: 3.60%, Prev: 3.90%)
- → Tue 07:00 — UK Unemployment Rate (F: 5.20%, Prev: 5.20%)
Markets remain sensitive to geopolitical developments, with the next key UK data due tomorrow morning.
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.