PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, driving PWLB rates higher and increasing borrowing costs for local authorities.
GILT MOVE SUMMARY
- → 1y: 4.128% (+13bp) — front-end led the move higher.
- → 5y: 4.509% (+15bp) — significant upward shift in short/intermediate maturities.
- → 10y: 4.972% (+14bp) — belly of the curve also saw pronounced increases.
- → 30y: 5.686% (+10bp) — long end rose, but less than the front.
- → 50y: 5.274% (+9bp) — increases moderated at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.08% | +6bp |
| 5y | 5.48% | +6bp |
| 10y | 5.98% | +5bp |
| 25y | 6.61% | +5bp |
| 50y | 6.43% | +6bp |
WHAT DROVE TODAY
- → Geopolitical tensions — President Trump's declaration that the US-Iran ceasefire is "over" triggered a sharp rise in global bond yields and oil prices, with risk-off sentiment evident across markets.
- → UK data — Gilt tenders saw mixed results: the 2028 tender cleared at 3.99% (Prev: 4.22%), while the 2030 tender rose to 4.36% (Prev: 4.28%), but these did not appear to be the main driver.
WHAT THIS MEANS
- → PWLB rates increased by +5bp to +7bp across the curve, reflecting the sharp move higher in gilts.
- → Borrowing costs for local authorities are now at their highest levels in recent weeks.
- → The move was broad-based but most pronounced at the front end and belly of the curve.
NEXT ON THE DIARY
- → Thu 00:01 — RICS House Price Balance (Forecast: -30%, Prev: -34%)
Markets closed with higher yields and increased borrowing costs, as geopolitical risk dominated the session.
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.