PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day marginally lower across most maturities, resulting in a flat to slightly softer close for PWLB rates, with only minor changes across the curve.
GILT MOVE SUMMARY
- → 2y: 4.372% (+2bp) — short end slightly higher.
- → 10y: 4.956% (-1bp) — belly modestly lower.
- → 30y: 5.631% (-3bp) — long end led the decline.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.16% | +2bp |
| 5y | 5.54% | +1bp |
| 10y | 6.01% | unch |
| 25y | 6.60% | unch |
| 50y | 6.39% | unch |
WHAT DROVE TODAY
There was no single dominant driver for today's modest moves. The main UK data release was the S&P Global Services PMI Flash, which came in sharply below expectations at 47.9 (Forecast: 51.7, Previous: 52.7), indicating contraction in the sector. Manufacturing PMI was in line at 53.7. The 2036 gilt auction cleared at 5.03%, notably higher than the previous 4.61%. News coverage highlighted ongoing concerns about the economic impact of the Iran war, persistent inflation pressures, and domestic political uncertainty, but no single headline appeared to trigger a decisive market move.
WHAT THIS MEANS
- → PWLB rates ended the day little changed, with minor increases at the short end and stability further out.
- → Borrowing costs for local authorities remain close to recent highs, with no material relief across key maturities.
- → The curve remains broadly flat, with only marginal day-on-day shifts.
NEXT ON THE DIARY
- → Fri 00:01: Gfk Consumer Confidence (Forecast: -28)
- → Fri 07:00: Retail Sales MoM (Forecast: -0.60%)
Markets showed little directional conviction today, with local authority borrowing rates holding steady at elevated levels.
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.