PWLB briefing
Afternoon Rate Update
PM NOTICE SUMMARY — PWLB rates nudged 1bp higher across most maturities at the 12:24 reset; curve shape and overall levels remain broadly steady.
PWLB fixed rates at the 12:24 PM reset saw a uniform +1bp move across nearly all key tenors, with little change to the overall curve structure.
PWLB PM SNAPSHOT
- → 1y — 5.13% (+1bp)
- → 3y — 5.33% (+1bp)
- → 5y — 5.48% (+1bp)
- → 10y — 5.95% (+1bp)
- → 25y — 6.54% (+1bp)
- → 50y — 6.32% (+1bp)
WHAT'S NEW SINCE THIS MORNING
- → Mild upward shift — All key maturities moved +1bp at the PM fix, with the exception of 20y and 30y (unch).
- → Curve shape — The curve remains broadly unchanged, with no material steepening or flattening.
CONTEXT
- → UK retail sales — April retail sales fell sharply (-1.3% MoM, vs forecast -0.6%), with the YoY figure flat (0.0% vs 1.3% forecast), reflecting weaker consumer confidence and reduced fuel spending amid ongoing Middle East tensions.
- → Public borrowing — UK government borrowing in April came in higher than expected at £24.3bn, the highest since 2020, adding to fiscal headwinds.
- → Gilt market context — News flow highlights a recent relief rally in gilts, but today's data points to renewed concerns around UK growth and fiscal position.
LOOK AHEAD
Diary is light into tomorrow.
A quiet PM reset: rates are a touch firmer, but the curve is steady and no major data is due until after the long weekend.
This commentary is provided for information only and is not financial advice. Please verify rates directly with PWLB or official sources before acting.
Gilt Edge Advisor — If you’re reading this, you’re already ahead of the curve.