PWLB briefing
End of Day Wrap-Up
UK gilt yields declined moderately across the curve today, leading to a small but broad-based rise in PWLB rates at the afternoon fixing.
GILT MOVE SUMMARY
- → 1y: 4.120% (+1bp) — short end marginally higher, diverging from the rest of the curve.
- → 5y: 4.368% (-3bp) — front-end and belly yields fell modestly.
- → 10y: 4.814% (-4bp) — declines extended into the belly.
- → 30y: 5.518% (-4bp) — long-end yields also moved lower, maintaining a parallel curve shift.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.10% | +1bp |
| 5y | 5.43% | +1bp |
| 10y | 5.90% | +1bp |
| 25y | 6.51% | +1bp |
| 50y | 6.29% | +1bp |
WHAT DROVE TODAY
- → US data releases were the main international focus: Q1 GDP growth was revised down to 1.60% (Forecast: 2.0%, Previous: 0.50%), while the Core PCE Price Index rose 0.20% MoM (Forecast: 0.30%, Previous: 0.30%), and Durable Goods Orders surprised to the upside at 7.90% (Forecast: 3.50%, Previous: 1.30%).
- → News of a US-Iran truce extension and easing oil prices contributed to a more stable global risk backdrop late in the session.
WHAT THIS MEANS
- → PWLB rates ended the day marginally higher by +1bp across all maturities, despite the parallel decline in gilt yields.
- → The cost of new local authority borrowing increased fractionally, with no significant change to curve shape.
- → Moves were modest and did not materially alter prevailing borrowing conditions.
NEXT ON THE DIARY
- → Fri 07:00: GBP Nationwide Housing Prices MoM (Forecast: 0.20%), YoY (Forecast: 2.90%)
- → Fri 09:20: GBP BoE Governor Bailey Speech (MEDIUM)
Market conditions were stable with only minor changes to local authority borrowing costs as the week draws to a close.
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.