PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, resulting in modest increases in PWLB maturity rates at most tenors.
GILT MOVE SUMMARY
- → 2y: 4.502% (+5bp) — front-end led the move higher.
- → 10y: 5.129% (+4bp) — belly followed with a parallel rise.
- → 30y: 5.783% (+3bp) — long end also higher, but slightly less pronounced.
- → 40y: 5.753% (+6bp) — largest move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.22% | +1bp |
| 5y | 5.61% | unch |
| 10y | 6.09% | unch |
| 25y | 6.67% | unch |
| 50y | 6.46% | +1bp |
WHAT DROVE TODAY
- → Labour market data: Unemployment Rate rose to 5.0% (Forecast: 4.90%, Previous: 4.90%), and Average Earnings incl. Bonus accelerated to 4.10% (Forecast: 3.80%, Previous: 3.90%), both released at 07:00.
- → Global bond market pressure: News coverage highlighted a rise in US Treasury yields to multi-year highs amid persistent inflation concerns, contributing to upward pressure on global yields.
WHAT THIS MEANS
- → PWLB maturity rates ended the day up by +1bp at most short and long tenors, with the belly largely unchanged.
- → Borrowing costs for local authorities increased marginally, reflecting the parallel move higher in underlying gilt yields.
- → Yield curve shape remains broadly stable, with no significant steepening or flattening observed.
NEXT ON THE DIARY
- → Wednesday 07:00: GBP Inflation Rate YoY (Forecast: 3.0%)
- → Wednesday 07:00: GBP Core Inflation Rate YoY (Forecast: 2.70%)
PWLB rates finished the day modestly higher, with market focus turning to tomorrow’s UK inflation data.
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.