PWLB briefing
End of Day Wrap-Up
UK gilt yields declined notably across the curve today, leading to a uniform reduction in PWLB rates at all maturities.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 1y | 4.234% | -7bp |
| 5y | 4.541% | -6bp |
| 10y | 4.992% | -7bp |
| 30y | 5.657% | -8bp |
| 50y | 5.191% | -8bp |
Declines were broad-based, with long-dated yields leading the move lower.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.24% | -2bp |
| 5y | 5.58% | -2bp |
| 10y | 6.06% | -2bp |
| 25y | 6.65% | -3bp |
| 50y | 6.44% | -3bp |
WHAT DROVE TODAY
- → UK GDP surprised to the upside — March GDP MoM was +0.30% (Forecast: -0.20%, Previous: +0.40%), and Q1 GDP YoY came in at +1.10% (Forecast: +0.80%, Previous: +1.0%), indicating stronger-than-expected economic momentum.
- → Political uncertainty — News coverage highlighted deepening turmoil within the UK government, with high-profile resignations and warnings from business leaders about economic risks.
- → No single dominant driver — Despite strong UK data, the broad-based decline in gilt yields suggests global factors or technical positioning may have contributed, but no clear catalyst is evident from today’s headlines.
WHAT THIS MEANS
- → PWLB rates fell by 2–3bp across the curve — This modestly reduced borrowing costs for all standard maturities.
- → Long-dated borrowing saw the largest move — 25y and 50y rates dropped by 3bp, reflecting the slightly larger decline in long gilt yields.
- → Overall borrowing conditions eased slightly — The downward move was broad-based but not dramatic.
NEXT ON THE DIARY
- → Tuesday 07:00 — UK Unemployment Rate (Forecast: 5.30%)
- → Tuesday 07:00 — UK Average Earnings incl. Bonus (Forecast: 3.80%)
PWLB rates ended the day lower, with the move reflecting broad-based declines in gilt yields amid mixed domestic data and ongoing political uncertainty.
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.