PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, leading to modest increases in PWLB rates due to the timing of the rate setting, with borrowing costs ending the day slightly higher despite the underlying rally in government bonds.
GILT MOVE SUMMARY
- → 2y: 4.23% (-10bp) — front-end led declines.
- → 10y: 4.84% (-8bp) — broad rally across the belly.
- → 30y: 5.53% (-6bp) — long-end also firmer, but less than short maturities.
- → 50y: 5.11% (-4bp) — flattening bias as declines moderate at the very long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.06% | +2bp |
| 5y | 5.39% | +2bp |
| 10y | 5.86% | +2bp |
| 25y | 6.47% | +2bp |
| 50y | 6.27% | +3bp |
PWLB rates reflect the midday reset and may not fully capture the late-session gilt rally.
WHAT DROVE TODAY
- → UK GDP (MoM): -0.10% (Actual, Forecast: -0.10%, Previous: 0.30%) — confirms a modest contraction in April, in line with expectations.
- → Global risk sentiment — Gilt yields tracked a global bond rally, with news of progress toward a US-Iran peace deal driving oil prices sharply lower and supporting government bonds.
WHAT THIS MEANS
- → PWLB rates ended modestly higher — despite a notable rally in gilts, due to the timing of the rate setting.
- → Borrowing costs remain elevated — with 10y and 25y PWLB rates both above 5.8% and 6.4% respectively.
- → Underlying market tone improved — as global bond yields fell on easing geopolitical risk.
NEXT ON THE DIARY
- → Tuesday 10:00 — GBP Treasury Gilt 2036 Auction (Previous: 5.03%)
- → No high or medium-impact GBP releases scheduled for Monday
Markets responded to a combination of in-line UK data and improved global sentiment, but PWLB borrowers saw little immediate relief in rate settings today.
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.