PWLB briefing
End of Day Wrap-Up
UK gilt yields declined modestly across the curve today, leading to small upward adjustments in PWLB rates at the afternoon setting.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 1y | 4.311% | -5bp |
| 5y | 4.606% | -3bp |
| 10y | 5.069% | -3bp |
| 30y | 5.740% | -2bp |
Declines were led by the front end, with a parallel move across the curve.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.29% | +1bp |
| 5y | 5.63% | +1bp |
| 10y | 6.11% | +2bp |
| 25y | 6.71% | +3bp |
| 50y | 6.50% | +2bp |
WHAT DROVE TODAY
There were no significant UK data releases or domestic policy events today. The main global development was a sharp upside surprise in US producer price inflation (PPI MoM actual: 1.40% vs forecast: 0.50%, previous: 0.70%), which contributed to volatility in international rates markets. However, UK gilt yields moved modestly lower, suggesting local factors or technicals dominated. No clear domestic driver for the move is evident from today’s calendar or news flow.
WHAT THIS MEANS
- → PWLB rates — ended the day slightly higher across all maturities, with increases of +1bp to +3bp.
- → Borrowing costs — rose marginally for local authorities compared to yesterday.
- → Market conditions — remain stable, with no evidence of significant domestic market stress or volatility.
NEXT ON THE DIARY
- → Thu 00:01 — RICS House Price Balance (forecast: -25%)
- → Thu 07:00 — GDP Growth Rate YoY Prel (forecast: 0.80%), GDP MoM (forecast: -0.20%), GDP QoQ Prel (forecast: 0.60%)
Please refer to official sources for the latest PWLB rates and monitor tomorrow’s key UK economic releases for potential market impact.
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.