PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly higher across the curve, resulting in a parallel increase in PWLB rates.
GILT MOVE SUMMARY
- → 2y: 4.379% (+1bp) — modest upward move at the front end.
- → 5y: 4.485% (+2bp) — slightly larger increase in the short-dated sector.
- → 10y: 4.945% (+1bp) — belly of the curve moved in line with the broader trend.
- → 30y: 5.634% (+1bp) — long end also edged higher, maintaining a flat curve shift.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.18% | +2bp |
| 5y | 5.47% | +2bp |
| 10y | 5.95% | +1bp |
| 25y | 6.56% | +1bp |
| 50y | 6.36% | +1bp |
WHAT DROVE TODAY
- → UK S&P Global Construction PMI: 39.7 (Actual) vs 45.7 (Forecast) and 45.6 (Previous) — sharply weaker than expected, indicating contraction in the sector.
- → No other major UK data or gilt-specific news — broader market commentary focused on international themes and earnings, with no clear domestic driver for gilt moves.
WHAT THIS MEANS
- → PWLB rates finished the day 1–2bp higher across all key maturities.
- → Borrowing costs for local authorities edged up slightly in line with the modest upward move in gilts.
- → No material curve steepening or flattening — the move was broadly parallel.
NEXT ON THE DIARY
- → 07:00 (Fri): Halifax House Price Index YoY — Forecast: 0.80%
- → 07:00 (Fri): Halifax House Price Index MoM — Forecast: 0.20%
- → 10:00 (Fri): BBA Mortgage Rate — Forecast: 6.70%
Please refer to official sources for the latest PWLB rates and monitor upcoming data for further market direction.
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.