PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, leading to a parallel decline in PWLB maturity rates.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 2y | 4.36% | -13bp |
| 5y | 4.52% | -14bp |
| 10y | 4.99% | -13bp |
| 30y | 5.66% | -12bp |
Declines were broad-based, with the largest moves at the short and intermediate tenors.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.17% | -2bp |
| 5y | 5.57% | -4bp |
| 10y | 6.06% | -4bp |
| 25y | 6.66% | -3bp |
| 50y | 6.44% | -3bp |
WHAT DROVE TODAY
- → UK inflation data — Headline CPI YoY came in at 2.80% (Forecast: 3.0%, Previous: 3.30%), with core CPI YoY at 2.50% (Forecast: 2.60%, Previous: 3.10%). Both measures undershot expectations and showed a marked slowdown from last month.
- → Market context — News coverage highlighted the inflation miss as the key market focus, with no other major UK-specific events cited as drivers.
WHAT THIS MEANS
- → PWLB maturity rates — Ended the day 2–4bp lower, reflecting the parallel move in gilts.
- → Borrowing costs — Declined modestly across all standard tenors, with the largest reductions at 3–10 years.
- → Curve shape — The move was broadly parallel, so relative value between short and long maturities was little changed.
NEXT ON THE DIARY
- → Thu 09:30 — S&P Global Manufacturing PMI Flash (Forecast: 53)
- → Thu 09:30 — S&P Global Services PMI Flash (Forecast: 51.7)
- → Thu 11:00 — CBI Industrial Trends Orders (Forecast: -40)
PWLB rates tracked the sharp decline in gilts following the lower-than-expected UK inflation data, modestly improving borrowing conditions across the curve.
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.