PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, resulting in modest increases in most PWLB maturity rates, with the front end leading the move.
GILT MOVE SUMMARY
- → 1y: 4.420% (+7bp) — front-end led the rise.
- → 5y: 4.603% (+8bp) — short and intermediate yields moved higher.
- → 10y: 5.063% (+8bp) — belly of the curve matched the front-end move.
- → 30y: 5.719% (+3bp) — long end rose, but less than shorter maturities.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.29% | +1bp |
| 5y | 5.56% | +1bp |
| 10y | 6.03% | unch |
| 25y | 6.62% | -2bp |
| 50y | 6.42% | -2bp |
WHAT DROVE TODAY
The move higher in gilt yields was broad-based and front-end led, mirroring a global selloff in government bonds. Commentary highlights rising oil prices and ongoing geopolitical tensions in the Middle East, particularly the Iran war and disruptions in the Strait of Hormuz, as key themes driving risk aversion and inflation concerns. US Treasury yields also rose to their highest levels this month, further pressuring global rates. No major UK-specific data releases occurred today, and the move appears to have been driven by international factors and anticipation ahead of the US Federal Reserve’s interest rate decision later this evening.
WHAT THIS MEANS
- → Short and medium PWLB rates edged up (+1bp), reflecting higher gilt yields at the front end.
- → Longer PWLB rates (25y, 50y) fell slightly (-2bp), as the rise in gilt yields was less pronounced at the long end.
- → Overall, borrowing costs for local authorities were little changed to modestly higher at shorter maturities, with a small decline at the longest tenors.
NEXT ON THE DIARY
- → Thu 12:00 — BoE Interest Rate Decision (Forecast: 3.75%)
- → Thu 12:00 — BoE Monetary Policy Report & MPC Meeting Minutes
Gilt and PWLB markets ended the day with a steeper curve and heightened sensitivity to global developments, as attention turns to tomorrow’s Bank of England decision.
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.