End of Day Wrap-Up

UK gilt yields rose across the curve today, resulting in a modest decline in PWLB rates at the close.

GILT MOVE SUMMARY

• → 1y: 4.205% (+5bp) — front-end led the move higher.
• → 10y: 4.942% (+5bp) — belly tracked the front-end, maintaining a parallel shift.
• → 30y: 5.620% (+4bp) — long end also moved higher, but slightly less than the short end.
• → 50y: 5.179% (+5bp) — ultra-long yields matched the front-end move.

PWLB CLOSE SNAPSHOT

• → 1y: 5.16% (‑2bp)
• → 5y: 5.51% (‑1bp)
• → 10y: 5.96% (‑1bp)
• → 25y: 6.56% (‑1bp)
• → 50y: 6.35% (‑1bp)

WHAT DROVE TODAY

No UK economic data was released today, and there were no scheduled events. The move higher in gilt yields occurred alongside a broad rise in global government bond yields, as highlighted by news coverage referencing higher yields in the US, Europe, and Japan. Commentary also pointed to ongoing concerns about inflation and the potential for further rate hikes in the US, but no direct UK-specific catalyst was evident.

WHAT THIS MEANS

• → PWLB maturity rates ended the day modestly lower by (‑1bp) to (‑2bp) across the curve.
• → The move reflects the lagged adjustment to previous gilt market direction, with today's gilt yield increases not yet fully reflected in PWLB rates.
• → Borrowing costs for local authorities finished the day slightly lower, but the underlying market trend points to upward pressure.

NEXT ON THE DIARY

• → Tue 00:01: GBP BRC Retail Sales Monitor YoY (Forecast: 0.60%, Previous: ‑3.40%)

Please refer to official sources for the most up-to-date PWLB rates and market developments.

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.