PWLB briefing
End of Day Wrap-Up
UK gilt yields rose modestly across the curve today, resulting in small upward moves in most PWLB maturity rates.
GILT MOVE SUMMARY
- → 2y: 4.353% (+2bp) — modest rise, short end broadly in line with rest of curve.
- → 10y: 4.923% (+2bp) — belly saw similar upward pressure.
- → 30y: 5.607% (+1bp) — long end firmer but with a slightly smaller move.
- → 50y: 5.171% (+2bp) — ultra-long yields echoed the modest upward shift.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.14% | +1bp |
| 5y | 5.48% | unch |
| 10y | 5.94% | unch |
| 25y | 6.55% | +1bp |
| 50y | 6.34% | +1bp |
WHAT DROVE TODAY
Today’s moves followed a modest global rates sell-off, with attention focused on US inflation data. The US May CPI came in at 0.50% MoM (Forecast: 0.50%, Previous: 0.60%) and 4.20% YoY (Forecast: 4.20%, Previous: 3.80%), marking a three-year high. However, the core CPI was softer than expected at 0.20% MoM (Forecast: 0.30%, Previous: 0.40%) and 2.90% YoY (Forecast: 2.90%, Previous: 2.80%). News coverage highlighted that energy price pressures from the ongoing Iran conflict are sustaining headline inflation, while underlying inflation pressures appear to be easing. There were no significant UK data releases today, and no major domestic news directly impacting gilts.
WHAT THIS MEANS
- → PWLB rates ended the day slightly higher or unchanged across most maturities, reflecting the modest upward move in gilts.
- → Borrowing costs for local authorities are fractionally higher at the short and long ends, with the 5y and 10y rates unchanged.
- → The overall shape of the curve remains broadly stable, with no sharp steepening or flattening.
NEXT ON THE DIARY
- → 00:01 Thu: GBP RICS House Price Balance (Forecast: -31%)
PWLB borrowing costs finished the day marginally higher, with market attention remaining on global inflation dynamics and geopolitical risks.
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.