PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, leading to a modest decline in PWLB rates at selected maturities.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 2y | 4.12% | -3bp |
| 5y | 4.25% | -6bp |
| 10y | 4.68% | -6bp |
| 30y | 5.38% | -8bp |
Declines were led by the long end, with 20–50y yields down -7 to -8bp, while the front end also moved lower but to a lesser extent.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.99% | +1bp |
| 5y | 5.30% | -1bp |
| 10y | 5.77% | unch |
| 25y | 6.39% | unch |
| 50y | 6.21% | unch |
PWLB rates saw a minor move, with only the 1y (+1bp), 5y (-1bp), and 20y (-1bp, not shown above) changing; all other key maturities were unchanged.
WHAT DROVE TODAY
There was no clear domestic catalyst for today’s gilt rally. The only UK data of note was the 2031 gilt auction, which cleared at 4.28% (Previous: 4.65%), but this is a low-impact event. Bank of England speakers (Breeden, Dhingra) were scheduled, but there is no evidence in the news flow that their remarks materially influenced rates. Broader market commentary focused on falling oil prices and global equity volatility, but no direct link to UK rates was established in today’s coverage.
WHAT THIS MEANS
- → PWLB rates — ended the day little changed, with only minor moves at the short and intermediate maturities.
- → Longer-term borrowing costs — remained stable, as the 25y and 50y PWLB rates were unchanged despite notable declines in long gilt yields.
- → Overall — the cost of new PWLB borrowing was broadly steady, with only marginal improvement at the 5y and 20y points.
NEXT ON THE DIARY
- → Tomorrow 11:00 — GBP CBI Distributive Trades (MEDIUM), forecast: -41 (prev: -46)
In summary, gilt yields fell notably but this translated into only marginal changes in PWLB rates, leaving borrowing conditions largely unchanged for local authorities.
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.