PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly higher across the curve today, lifting PWLB rates by 1–3bp and slightly increasing local authority borrowing costs.
GILT MOVE SUMMARY
| Tenor | Yield | Change | Comment |
|---|---|---|---|
| 2y | 4.18% | +4bp | Front-end led |
| 5y | 4.31% | +3bp | Short and belly higher |
| 10y | 4.76% | +2bp | Mild upward pressure |
| 30y | 5.46% | -1bp | Long end slightly lower |
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.05% | +3bp |
| 5y | 5.35% | +3bp |
| 10y | 5.81% | +2bp |
| 25y | 6.42% | +1bp |
| 50y | 6.23% | +2bp |
WHAT DROVE TODAY
- → Bank of England holds rates — The MPC kept Bank Rate at 3.75% (Actual: 3.75%, Forecast: 3.75%, Previous: 3.75%), with a 7-2 vote split and two members preferring a hike.
- → Macro backdrop — The BoE cited an "encouraging" fall in oil prices following the US-Iran deal, but warned of persistent inflationary pressures. UK unemployment (Actual: 4.90%, Forecast: 5.0%) and wage growth (Actual: 4.40%, Forecast: 4.0%) were broadly in line with expectations.
WHAT THIS MEANS
- → PWLB rates rose modestly — Borrowing costs increased by 1–3bp across the curve.
- → Front-end led move — Shorter maturities saw the largest increases, reflecting market sensitivity to near-term policy and inflation signals.
- → Long end steady — Long-dated yields and PWLB rates were little changed, limiting the impact on very long-term borrowing.
NEXT ON THE DIARY
- → Fri 00:01 — Gfk Consumer Confidence (Forecast: -24)
- → Fri 07:00 — Retail Sales MoM (Forecast: 0.50%)
- → Fri 07:00 — Retail Sales YoY (Forecast: 1.90%)
PWLB rates finished the day slightly higher, with the market focused on central bank signals and the evolving macro backdrop.
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.