PWLB briefing
End of Day Wrap-Up
UK gilt yields declined modestly across the curve today, leading to a small reduction in PWLB rates for most maturities.
GILT MOVE SUMMARY
- → 2y: 4.295% (-2bp) — modest decline at the front end.
- → 10y: 4.858% (-3bp) — belly followed the downward move.
- → 30y: 5.542% (-4bp) — long end led declines.
- → 50y: 5.101% (-3bp) — similar move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.08% | unch |
| 5y | 5.39% | -1bp |
| 10y | 5.86% | -1bp |
| 25y | 6.47% | -1bp |
| 50y | 6.25% | -2bp |
WHAT DROVE TODAY
There were no clear domestic data or news catalysts directly driving UK gilt yields today. The economic calendar featured UK mortgage approvals (actual: 65,900 vs previous: ~63,100), which surprised to the upside, but this did not translate into upward pressure on yields. Broader market sentiment was influenced by international headlines, including a surge in US job openings (actual: 7.6m vs previous: 6.87m), but UK rates followed a modest downward trend throughout the session. No single event stands out as the primary driver.
WHAT THIS MEANS
- → PWLB rates ended the day 1–2bp lower across most maturities, reflecting the modest decline in gilt yields.
- → Borrowing costs for local authorities are fractionally lower than yesterday, with the largest moves at the long end.
- → The shape of the curve flattened slightly, with long-dated rates seeing the biggest reductions.
NEXT ON THE DIARY
- → Wed 09:30: S&P Global Composite PMI Final (Forecast: 48.5)
- → Wed 09:30: S&P Global Services PMI Final (Forecast: 47.9)
PWLB borrowing costs eased slightly today, with no major domestic catalyst behind 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.