End of Day Wrap-Up

UK gilt yields ended modestly higher across most maturities, resulting in a parallel upward shift in PWLB rates by +1bp to +2bp depending on tenor.

GILT MOVE SUMMARY

• → 2y: 4.111% (unch) — front-end stable.
• → 5y: 4.307% (+1bp) — slight upward move in short-dated yields.
• → 10y: 4.791% (unch) — belly unchanged.
• → 30y: 5.535% (+2bp) — long end led the upward shift.

PWLB CLOSE SNAPSHOT

• → 1y: 4.95% (+1bp)
• → 5y: 5.31% (+1bp)
• → 10y: 5.82% (+1bp)
• → 25y: 6.46% (+2bp)
• → 50y: 6.27% (+2bp)

WHAT DROVE TODAY

There were no clear domestic catalysts for today's modest upward move in gilt yields. The only notable UK data was the S&P Global Construction PMI (Actual: 38.4, Forecast: 40, Previous: 38.2), which remained weak and below expectations, and New Car Sales YoY (Actual: 11%, Forecast: 2.80%, Previous: 7.10%), which was strong but is a low-impact release for rates. Broader market commentary referenced global themes such as US labour market data and oil price movements, but no direct link to today's gilt price action was evident.

WHAT THIS MEANS

• → PWLB rates ended the day 1–2bp higher across the curve, reflecting the parallel move in gilts.
• → Borrowing costs for local authorities rose fractionally versus Friday, with the largest increases at the long end.
• → No significant repricing or volatility was observed, with moves well within recent daily ranges.

NEXT ON THE DIARY

• → Tue 07:00: Halifax House Price Index MoM (Forecast: 0.10%)
• → Tue 07:00: Halifax House Price Index YoY (Forecast: 0.30%)

Overall, a quiet session with only marginal increases in borrowing costs and no clear domestic catalyst for the move.

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.