PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day modestly lower across most maturities, with PWLB rates closing slightly higher or unchanged, reflecting a mixed but generally stable session for local authority borrowing costs.
GILT MOVE SUMMARY
- → 1y: 4.041% (-4bp) — front-end led declines.
- → 5y: 4.321% (-4bp) — short and medium tenors down.
- → 10y: 4.814% (-3bp) — belly also softer.
- → 30y: 5.532% (unch) — long end steady; 50y up slightly.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.99% | unch |
| 5y | 5.33% | +1bp |
| 10y | 5.83% | +2bp |
| 25y | 6.45% | +2bp |
| 50y | 6.26% | +3bp |
WHAT DROVE TODAY
No UK economic data was released today. The main market influence was the announcement of a US-Iran peace agreement, which triggered a global rally in risk assets and a sharp drop in oil prices. However, commentary notes that the decline in UK gilt yields was modest, with investors remaining cautious ahead of this week’s major central bank decisions, including the US Federal Reserve and Bank of England meetings. There was no evidence of domestic data or policy surprises driving today’s moves.
WHAT THIS MEANS
- → Short and medium gilt yields fell, but PWLB rates were steady or slightly higher across most maturities.
- → The cost of new PWLB borrowing ended the day marginally higher for most terms, with the largest move (+3bp) at 50 years.
- → Overall, borrowing conditions were little changed, with no significant volatility.
NEXT ON THE DIARY
- → Wednesday 07:00: GBP Inflation Rate YoY — Forecast: 3.0% (Prev: 2.80%)
- → Thursday 07:00: GBP Unemployment Rate — Forecast: 5.0% (Prev: 5.0%)
- → Thursday 12:00: GBP BoE Interest Rate Decision — Forecast: 3.75% (Prev: 3.75%)
Markets were steady ahead of key inflation and central bank decisions later this week.
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.