PWLB briefing
End of Day Wrap-Up
UK gilt yields declined modestly across the curve today, leading to a small reduction in PWLB maturity rates.
GILT MOVE SUMMARY
- → 1y: 4.150% (-4bp) — front-end led the move lower.
- → 5y: 4.457% (-2bp) — moderate decline in short and intermediate tenors.
- → 10y: 4.907% (-3bp) — belly of the curve also softer.
- → 30y: 5.590% (-2bp) — long end followed the general downward trend.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.15% | -1bp |
| 5y | 5.49% | -2bp |
| 10y | 5.95% | -2bp |
| 25y | 6.55% | -2bp |
| 50y | 6.34% | -2bp |
WHAT DROVE TODAY
There were no clear domestic data or news catalysts directly impacting UK gilts today. The only UK release, RICS House Price Balance (-35%, in line with previous, below forecast), had limited market impact. Internationally, the ECB raised its main deposit rate to 2.25% (Actual: 2.25%, Forecast: 2.25%, Previous: 2.0%) and the main rate to 2.40% (Actual: 2.40%, Forecast: 2.40%, Previous: 2.15%), but this was widely anticipated. US PPI surprised to the upside (Actual: +1.10% MoM vs Forecast: +0.70%), but had limited spillover to UK rates. Overall, the modest downward move in yields appears to reflect a lack of new domestic drivers and a generally stable risk environment.
WHAT THIS MEANS
- → PWLB maturity rates ended the day 1–2bp lower across the curve.
- → Borrowing costs for local authorities eased slightly, with the largest reductions seen in medium and long maturities.
- → The move was modest and reflects a quiet session for UK-specific market drivers.
NEXT ON THE DIARY
- → Fri 07:00: GBP GDP MoM (Forecast: -0.10%)
- → Fri 07:00: GBP GDP 3-Month Avg (Forecast: 0.70%)
- → Fri 07:00: GBP Industrial Production MoM (Forecast: 0.10%)
PWLB rates tracked the modest decline in gilts, leaving borrowing costs slightly lower at the close.
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.