PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, driving a notable decline in PWLB maturity rates.
GILT MOVE SUMMARY
- → 1y: 4.25% (-13bp) — front-end led the decline.
- → 10y: 4.94% (-12bp) — belly moved in line with the curve.
- → 30y: 5.62% (-11bp) — long end followed, with slightly smaller declines.
- → 50y: 5.19% (-9bp) — smaller move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.13% | -12bp |
| 5y | 5.44% | -10bp |
| 10y | 5.93% | -8bp |
| 25y | 6.55% | -6bp |
| 50y | 6.35% | -6bp |
WHAT DROVE TODAY
- → Middle East de-escalation hopes — Multiple sources reported sharp declines in oil prices as diplomatic progress between the US and Iran raised expectations for a potential ceasefire and safe passage through the Strait of Hormuz.
- → UK data — Final S&P Global Composite PMI (Actual: 52.6, Forecast: 52, Previous: 50.3) and Services PMI (Actual: 52.7, Forecast: 52, Previous: 50.5) both surprised modestly to the upside, but did not appear to offset the global risk-on move.
WHAT THIS MEANS
- → PWLB maturity rates fell by 6–12bp — Lower borrowing costs across all standard tenors.
- → Front-end led the move — The largest declines were seen in short-dated gilts and PWLB rates.
- → Borrowing conditions improved — Today's moves delivered a material reduction in local authority funding costs.
NEXT ON THE DIARY
- → Thu 09:30 — S&P Global Construction PMI (Forecast: 45.7)
Gilt and PWLB rates ended the day lower, reflecting improved sentiment around geopolitical risks and a more favourable backdrop for local authority borrowing.
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.