End of Day Wrap-Up

UK gilt yields rose sharply across the curve today, driving PWLB rates higher and pushing long-term borrowing costs to multi-decade highs.

GILT MOVE SUMMARY

• → 2y: 4.513% (+11bp) — front-end led the move higher.
• → 10y: 5.059% (+9bp) — significant gains in the belly.
• → 30y: 5.736% (+9bp) — long-end yields at 28-year highs.
• → 50y: 5.280% (+8bp) — upward pressure persisted across the ultra-long end.

PWLB CLOSE SNAPSHOT

• → 1y: 5.32% (+2bp)
• → 5y: 5.61% (+3bp)
• → 10y: 6.09% (+3bp)
• → 25y: 6.69% (+4bp)
• → 50y: 6.48% (+3bp)

PWLB rates set after 12:30 reflect the full extent of the gilt market's move.

WHAT DROVE TODAY

The sharp rise in gilt yields was not linked to any major UK economic data release today. However, news coverage highlighted a surge in oil prices and renewed inflation concerns, with the Bank of England warning that further energy shocks could force interest rate rises. Multiple outlets reported that 30-year gilt yields reached their highest levels since 1998, citing market fears over persistent inflation driven by the ongoing Middle East conflict and its impact on global energy costs. No significant domestic data surprises were reported, and the move appears to have been driven by global inflation and energy headlines rather than UK-specific releases.

WHAT THIS MEANS

• → PWLB rates rose by +2bp to +4bp across the curve, increasing borrowing costs for all maturities.
• → Long-term PWLB rates are now at their highest since at least 1998, reflecting elevated gilt yields.
• → The increase was broad-based, with no part of the curve spared from upward pressure.

NEXT ON THE DIARY

• → 17:30 — BoE Woods Speech (MEDIUM)
• → Tomorrow 09:30 — S&P Global Composite PMI Final (LOW, Forecast: 52)
• → Tomorrow 09:30 — S&P Global Services PMI Final (LOW, Forecast: 52)

Borrowing conditions tightened further today as market concerns over inflation and energy costs drove UK yields and PWLB rates to new cycle highs.

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.