PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly higher across most maturities, resulting in a small downward adjustment to PWLB rates at the afternoon setting.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 2y | 4.327% | +1bp |
| 10y | 4.901% | +1bp |
| 20y | 5.521% | +1bp |
| 50y | 5.142% | +1bp |
Gilt curve saw a uniform, modest upward shift (+1bp) across most maturities; 40y was unchanged.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.11% | -1bp |
| 5y | 5.45% | -1bp |
| 10y | 5.92% | -1bp |
| 25y | 6.52% | -1bp |
| 50y | 6.32% | unch |
WHAT DROVE TODAY
The modest upward move in gilt yields coincided with stronger-than-expected US nonfarm payrolls data (Actual: 172K, Forecast: 85K, Previous: 179K), which contributed to a global rise in yields and firmer US dollar. UK-specific data was mixed: the Halifax House Price Index for May showed a -0.10% MoM decline (Forecast: +0.10%, Previous: -0.10%), while 1Y CPI expectations fell to 3.70% (Forecast: 4.20%, Previous: 4.0%). No major UK market-moving events were evident, and the gilt curve shift was relatively uniform.
WHAT THIS MEANS
- → PWLB rates — ended the day 1bp lower across most maturities, with 50y unchanged.
- → Borrowing costs — saw a marginal decrease for short and medium tenors, reflecting the slight downward adjustment in PWLB rates.
- → Market tone — remained stable, with no significant UK-specific catalysts driving gilt or PWLB moves.
NEXT ON THE DIARY
- → 19:00 — BoE Governor Bailey Speech (MEDIUM)
Overall, local authority borrowing conditions were little changed, with a slight improvement in PWLB rates following a quiet session for UK-specific news.
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.