PWLB briefing
End of Day Wrap-Up
UK gilt yields declined notably across the curve today, resulting in small reductions in most PWLB maturity rates.
GILT MOVE SUMMARY
- → 1y: 4.231% (-6bp) — declines led by the front end.
- → 10y: 5.085% (-8bp) — belly and long end both saw meaningful falls.
- → 20y: 5.690% (-10bp) — long-dated yields down sharply.
- → 50y: 5.254% (-10bp) — parallel move lower across the long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.28% | unch |
| 5y | 5.68% | -1bp |
| 10y | 6.17% | -1bp |
| 25y | 6.76% | -1bp |
| 50y | 6.54% | -1bp |
WHAT DROVE TODAY
There were no major UK economic data releases today. The only scheduled events were speeches from BoE's Greene and Mann, with no market-moving headlines reported. News flow was dominated by global themes, including persistent inflation concerns, elevated energy prices due to Middle East tensions, and commentary on the prospect of structurally higher yields. However, no single domestic catalyst was evident for today's parallel decline in gilt yields.
WHAT THIS MEANS
- → Most PWLB maturity rates ended the day 1bp lower, reflecting the downward move in gilts.
- → The reduction was uniform across the curve, with the exception of the shortest tenors, which were unchanged.
- → Borrowing costs for local authorities eased slightly but remain elevated in absolute terms.
NEXT ON THE DIARY
- → Tue 07:00 — GBP Unemployment Rate (HIGH): Forecast 4.90% (Prev 4.90%)
- → Tue 07:00 — GBP Average Earnings incl. Bonus (MEDIUM): Forecast 3.80% (Prev 3.80%)
- → Tue 10:10 — BoE Breeden Speech (MEDIUM)
Markets will look to tomorrow's UK labour market data for the next potential catalyst.
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.