PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly lower across most maturities, leading to a small decline in PWLB rates at all key tenors.
GILT MOVE SUMMARY
- → 2y: 4.174% (unch) — short end broadly stable.
- → 10y: 4.793% (-2bp) — moderate decline in the belly.
- → 20y: 5.431% (-3bp) — long end led the move lower.
- → 50y: 5.099% (-3bp) — declines extended to ultra-long maturities.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.99% | -2bp |
| 5y | 5.31% | -3bp |
| 10y | 5.81% | -3bp |
| 25y | 6.44% | -3bp |
| 50y | 6.25% | -3bp |
WHAT DROVE TODAY
- → UK 2036 Gilt Auction — cleared at 4.86% (previous: 5.03%), indicating lower demand for yield at auction.
- → Geopolitical developments — news of an interim US-Iran deal to reopen the Strait of Hormuz led to a sharp fall in oil prices, easing inflation concerns and supporting lower yields.
- → No major UK data releases — no high-impact domestic economic data published today.
WHAT THIS MEANS
- → PWLB rates declined by 2–3bp across the curve, modestly reducing borrowing costs for local authorities.
- → Longer maturities saw the largest moves, with 20–50y rates down 3bp, reflecting the shape of the gilt rally.
- → PWLB rates remain elevated in historical context, but today's move was directionally favourable for borrowers.
NEXT ON THE DIARY
- → Tomorrow 07:00 — UK Inflation Rate YoY (forecast: 3.0%, previous: 2.80%)
- → Tomorrow 07:00 — UK Core Inflation Rate YoY (forecast: 2.70%, previous: 2.50%)
Gilt and PWLB rates eased modestly, with attention now turning to tomorrow's UK inflation data.
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.