PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly lower across most maturities, leading to a small decline in PWLB rates for local authority borrowers.
GILT MOVE SUMMARY
- → 1y: 3.961% (-6bp) — front-end led the move lower.
- → 10y: 4.752% (-1bp) — belly saw a marginal decline.
- → 30y: 5.485% (+1bp) — long end slightly higher, mild steepening.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.98% | -3bp |
| 5y | 5.32% | -3bp |
| 10y | 5.82% | -3bp |
| 25y | 6.45% | -2bp |
| 50y | 6.27% | -2bp |
WHAT DROVE TODAY
- → US data and central bank commentary — US ADP private payrolls undershot expectations (Actual: 98k, Forecast: 120k, Previous: 122k), and Fed Chair Warsh noted easing inflation risks, contributing to a mild risk-on tone globally.
- → Eurozone inflation — Euro area flash CPI came in below forecast (Actual: 2.8%, Forecast: 3.0%, Previous: 3.2%), supporting a softer rates backdrop.
- → UK data impact limited — Domestic releases (Nationwide house prices flat MoM, S&P Global Manufacturing PMI Final 52.5 vs 53.1 forecast) had little observable effect on gilts.
WHAT THIS MEANS
- → PWLB rates declined by 2–3bp across the curve, modestly reducing borrowing costs for local authorities.
- → Yield curve steepened slightly as short gilts outperformed, but moves were contained.
- → No material intraday volatility — both AM and PM PWLB settings reflected the steady gilt market.
NEXT ON THE DIARY
- → Thu 09:30 — BoE Credit Conditions Survey (LOW)
No HIGH or MEDIUM UK releases scheduled for the remainder of today. US Non-Farm Payrolls (Thu 13:30) may be relevant for global rates direction.
PWLB borrowing costs finished the day fractionally lower, with no significant domestic data impact and a calm rates 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.