PWLB briefing
End of Day Wrap-Up
Gilt yields edged lower across the curve today, leading to a modest decline in PWLB rates for most maturities.
GILT MOVE SUMMARY
- → 2y: 4.203% (-3bp) — front-end led the move lower.
- → 5y: 4.348% (-2bp) — short and intermediate yields declined.
- → 10y: 4.811% (-1bp) — smaller move in the belly.
- → 30y: 5.514% (unch) — long end stable.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.03% | -3bp |
| 5y | 5.36% | -2bp |
| 10y | 5.83% | -3bp |
| 25y | 6.45% | -3bp |
| 50y | 6.24% | -2bp |
WHAT DROVE TODAY
- → Euro area inflation data came in mixed but generally above previous readings (e.g., France Actual: 2.60% vs Forecast: 2.90%, Previous: 2.90%), supporting expectations for persistent price pressures.
- → Bank of England Governor Bailey signalled no urgency to raise rates, citing tolerable above-target inflation given economic softness and uncertainty from the Iran conflict.
- → Market sentiment was also influenced by hopes for a US-Iran peace deal, which contributed to lower oil prices and a modest risk-on tone.
WHAT THIS MEANS
- → PWLB rates ended the day 2–3bp lower across most maturities, reflecting the modest decline in gilt yields.
- → Borrowing costs for local authorities eased slightly, particularly at the short and intermediate tenors.
- → The long end of the curve was stable, so reductions in PWLB rates were less pronounced for longer maturities.
NEXT ON THE DIARY
- → Monday 09:30 — GBP S&P Global Manufacturing PMI Final (Forecast: 53.7)
Overall, a modestly softer day for borrowing costs as front-end and intermediate gilt yields led a small move lower, with no major surprises from data or central bank commentary.
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.