PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly lower across the curve, while PWLB rates finished the day up by 1–2bp, reflecting the timing of the PWLB reset relative to intraday gilt moves.
GILT MOVE SUMMARY
- → 2y: 4.340% (-1bp) — front-end marginally firmer.
- → 10y: 4.910% (unch) — belly stable on the day.
- → 20y: 5.521% (-3bp) — long end led declines.
- → 50y: 5.145% (-3bp) — ultra-long yields lower.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.25% | unch |
| 5y | 5.52% | +2bp |
| 10y | 6.00% | +2bp |
| 25y | 6.59% | +1bp |
| 50y | 6.39% | +2bp |
PWLB rates reflected the morning's firmer gilt levels, with the afternoon reset catching up to the modest decline in yields later in the session.
WHAT DROVE TODAY
- → US-Iran geopolitical developments — News of the US Justice Department dropping its probe into the Fed chair, and ongoing stalemate in US-Iran talks, contributed to a cautious tone in global bond markets.
- → No major UK data releases — The economic calendar was light for GBP, with no significant domestic data to drive gilt moves.
WHAT THIS MEANS
- → PWLB rates ended slightly higher — Borrowing costs for local authorities rose by 1–2bp across most maturities.
- → Gilt yields drifted lower intraday — The move was not fully captured in the morning PWLB reset, but the afternoon notice reflected the softer tone.
- → Curve shape little changed — No material steepening or flattening observed.
NEXT ON THE DIARY
- → Calendar is light into the next business day.
Overall, a modestly softer gilt market late in the day was only partially reflected in PWLB rates, leaving borrowing costs marginally higher at the close.
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.