PWLB briefing
End of Day Wrap-Up
UK gilt yields declined modestly across the curve today, resulting in a small downward adjustment in PWLB rates at most maturities.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 2y | 4.326% | -4bp |
| 10y | 4.895% | -3bp |
| 20y | 5.518% | -4bp |
| 50y | 5.139% | -3bp |
Declines were broadly parallel across the curve, with short and long maturities both down by 3–4bp.
PWLB CLOSE SNAPSHOT
- → 1y — 5.15% (+1bp)
- → 5y — 5.49% (+1bp)
- → 10y — 5.95% (+1bp)
- → 25y — 6.56% (+1bp)
- → 50y — 6.35% (+1bp)
PWLB rates ended the day slightly higher, reflecting the timing of the rate setting relative to gilt market moves.
WHAT DROVE TODAY
There were no major UK economic releases directly impacting gilts today. The S&P Global Construction PMI came in weaker than expected (Actual: 38.2 vs Forecast: 40.2, Previous: 39.7), but this is a medium-impact indicator. News flow highlighted a decline in oil prices following a ceasefire agreement between Israel and Lebanon, which contributed to a lower risk premium and supported a modest rally in global government bonds, including gilts. No other clear domestic drivers were evident.
WHAT THIS MEANS
- → Gilt yields fell by 3–4bp across the curve, but PWLB rates ended marginally higher due to the rate-setting schedule.
- → Borrowing costs for local authorities were little changed, with only a +1bp move at most key maturities.
- → Market conditions remained stable, with no significant volatility or new domestic catalysts.
NEXT ON THE DIARY
- → Fri 07:00 — Halifax House Price Index YoY (Forecast: 1.0%)
- → Fri 07:00 — Halifax House Price Index MoM (Forecast: 0.10%)
- → Fri 19:00 — BoE Gov Bailey Speech
Overall, today saw a modest parallel decline in gilt yields, with PWLB rates little changed and no major domestic data surprises.
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.