PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day modestly higher at the front end and largely unchanged to lower in longer maturities, resulting in a slight upward shift in short- and medium-term PWLB rates.
GILT MOVE SUMMARY
| Tenor | Yield | Change | Comment |
|---|---|---|---|
| 2y | 4.32% | +5bp | Front-end led rise |
| 5y | 4.43% | +5bp | Short and medium tenors higher |
| 10y | 4.90% | +4bp | Belly up, but less than front end |
| 30y | 5.57% | -3bp | Long end modestly lower |
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.11% | +1bp |
| 5y | 5.38% | +2bp |
| 10y | 5.89% | +1bp |
| 25y | 6.51% | unch |
| 50y | 6.31% | unch |
WHAT DROVE TODAY
- → No major UK economic data was released today to directly influence gilt yields.
- → Market commentary focused on ongoing geopolitical tensions in the Middle East and volatile oil prices, but there is no clear evidence these were the primary drivers of today's modest moves.
WHAT THIS MEANS
- → Short- and medium-term PWLB rates edged up by +1bp to +2bp, reflecting the upward move in gilt yields at the front end.
- → Long-dated PWLB rates were unchanged, as long gilt yields ended the day slightly lower.
- → Overall, borrowing costs for local authorities saw minor increases at the short and medium end, with stability further out the curve.
NEXT ON THE DIARY
- → Calendar is light into the next business day.
PWLB rates remain closely aligned to gilt market moves, with only minor changes 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.