PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, resulting in modest declines or unchanged levels in most PWLB maturity rates by the afternoon reset.
GILT MOVE SUMMARY
- → 2y: 4.168% (+5bp) — front-end yields rose in line with the broader curve.
- → 10y: 4.837% (+5bp) — belly of the curve moved higher, mirroring short and long ends.
- → 30y: 5.586% (+5bp) — long-dated yields rose in parallel with the rest of the curve.
- → 50y: 5.185% (+6bp) — largest move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 4.97% | unch |
| 5y | 5.34% | -1bp |
| 10y | 5.86% | unch |
| 25y | 6.50% | unch |
| 50y | 6.31% | -1bp |
WHAT DROVE TODAY
- → No major UK data surprises — The Lloyds House Price Index was slightly above forecast (MoM: 0.20% actual vs 0.10% forecast), but this is not typically a gilt market mover.
- → Global risk sentiment and geopolitical tensions — News flow highlighted renewed Middle East tensions and higher global yields, with reports of attacks on shipping in the Strait of Hormuz and rising US inflation expectations.
- → BoE Financial Stability Report — The Bank of England announced plans to ease some bank capital rules, but this did not appear to have a direct impact on gilt yields.
WHAT THIS MEANS
- → PWLB rates ended the day little changed or slightly lower — Despite a notable rise in gilt yields, most PWLB maturities saw only marginal moves, with some longer tenors down (-1bp) and others unchanged.
- → Borrowing costs remain elevated — The parallel upward move in gilt yields keeps overall funding costs at high levels.
- → Curve shape unchanged — The move was parallel, with no significant flattening or steepening.
NEXT ON THE DIARY
- → Tomorrow 10:00 — Treasury Gilt 2028 and 2030 tenders (LOW impact).
Markets saw a parallel rise in gilt yields today, but PWLB rates were largely steady or marginally lower, leaving borrowing conditions little changed by the close.
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.