End of Day Wrap-Up

UK gilt yields edged lower across most maturities today, leading to a modest decline in PWLB rates at the close.

GILT MOVE SUMMARY

• → 2y: 4.256% (-3bp) — front-end led the move lower.
• → 10y: 4.856% (-2bp) — belly followed, modest decline.
• → 30y: 5.555% (unch) — long end stable.

PWLB CLOSE SNAPSHOT

• → 1y: 5.06% (-1bp)
• → 5y: 5.38% (-2bp)
• → 10y: 5.85% (-2bp)
• → 25y: 6.46% (-1bp)
• → 50y: 6.25% (-1bp)

WHAT DROVE TODAY

• → UK Gilt Auction: The 2033 gilt auction cleared at 4.55% (Previous: 4.51%), indicating a slight uptick in funding costs at auction but not driving a material market move.
• → Geopolitical news: Reports of a draft peace proposal between the US and Iran led to a fall in oil prices, which may have contributed to a modest risk-on tone and lower yields.

WHAT THIS MEANS

• → PWLB rates ended slightly lower across most maturities, reflecting the modest decline in gilt yields.
• → Long-dated borrowing costs were broadly unchanged, with the 30y and 40y tenors flat on the day.
• → Short and medium maturities saw the largest moves, but the scale was limited to (-1bp) to (-3bp).

NEXT ON THE DIARY

• → Thu 10:00: Treasury Gilt 2030 Auction (LOW)
• → Thu 11:30: Treasury Gilt 2039 Auction (LOW)

Overall, local authority borrowing costs eased marginally today, with no significant new domestic data or events driving the move.

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.