PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to mostly unchanged or slightly lower PWLB rates at the close.
GILT MOVE SUMMARY
- → 2y: 4.15% (-2bp) — modest front-end decline.
- → 10y: 4.75% (-3bp) — belly followed the downward move.
- → 30y: 5.47% (-5bp) — long end led declines.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.97% | +1bp |
| 5y | 5.29% | +1bp |
| 10y | 5.78% | unch |
| 25y | 6.41% | unch |
| 50y | 6.22% | unch |
WHAT DROVE TODAY
- → UK inflation data for May was unchanged at 2.80% YoY (Forecast: 3.0%, Previous: 2.80%), with core inflation at 2.60% YoY (Forecast: 2.70%, Previous: 2.50%), offering no upside surprise.
- → No major UK-specific news or events provided a clear catalyst; moves followed a global trend of lower yields ahead of the US Federal Reserve meeting.
WHAT THIS MEANS
- → Gilt yields fell by 2–5bp across the curve, with the largest move at the long end.
- → PWLB rates were little changed, with minor upticks (+1bp) at the short and intermediate maturities and unchanged levels elsewhere.
- → Overall, borrowing costs for local authorities remain close to recent highs but saw no material increase today.
NEXT ON THE DIARY
- → Thu 07:00 — Unemployment Rate (Forecast: 5.0%)
- → Thu 12:00 — BoE Interest Rate Decision (Forecast: 3.75%)
- → Thu 12:00 — MPC Meeting Minutes and Vote Split
Please refer to official sources for the latest PWLB rates and monitor tomorrow's key UK labour market and Bank of England announcements for further context.
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.