PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day marginally higher across the curve, resulting in a modest uptick in PWLB rates for most maturities.
GILT MOVE SUMMARY
- → 2y: 4.109% (+1bp) — Modest upward move at the front end.
- → 10y: 4.781% (+1bp) — Belly of the curve also edged higher.
- → 30y: 5.516% (+1bp) — Long-dated yields moved up in line with the rest of the curve.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.97% | +1bp |
| 5y | 5.33% | +1bp |
| 10y | 5.83% | unch |
| 25y | 6.47% | +1bp |
| 50y | 6.28% | unch |
WHAT DROVE TODAY
- → UK data releases were limited — The S&P Global Services PMI Final came in at 48.8 (Forecast: 48.7, Previous: 49.3), confirming contraction in the sector, while DMP 1Y CPI Expectations fell to 3.30% (Forecast: 3.70%, Previous: 3.70%).
- → No clear market-moving catalyst — News flow and economic data did not point to a specific driver for today's minor upward move in yields.
WHAT THIS MEANS
- → PWLB rates finished slightly higher — Most maturities saw a +1bp adjustment, with the 10y and 50y unchanged.
- → Borrowing costs remain stable — The day's moves were minor and did not materially alter the cost environment for local authority borrowers.
NEXT ON THE DIARY
- → Monday 09:30 — S&P Global Construction PMI (Forecast: 45, Previous: 38.2)
Local authority borrowing conditions were little changed today, with only marginal upward pressure on most PWLB rates.
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.