PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, driving a modest upward adjustment in short and medium PWLB rates, with longer maturities little changed or slightly lower.
GILT MOVE SUMMARY
- → 1y: 4.147% (+12bp) — front-end led the move higher.
- → 10y: 4.972% (+11bp) — significant gains in the belly.
- → 20y: 5.594% (+8bp) — upward pressure extended into long maturities.
- → 50y: 5.257% (+6bp) — long end rose, but less than short maturities.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.09% | unch |
| 5y | 5.47% | unch |
| 10y | 5.96% | unch |
| 25y | 6.58% | unch |
| 50y | 6.38% | -1bp |
WHAT DROVE TODAY
- → No major UK economic data releases today; only a low-impact index-linked gilt auction.
- → News flow was dominated by a sharp escalation in US-Iran tensions and a surge in oil prices (Brent up 3.4% to $78.59), which raised global inflation concerns and contributed to higher yields.
- → No clear domestic driver; moves were consistent with global risk repricing amid geopolitical uncertainty.
WHAT THIS MEANS
- → Borrowing costs for local authorities rose modestly at the short and medium end, reflecting the sharp upward move in gilt yields.
- → Long-dated PWLB rates were broadly stable to slightly lower, despite higher long gilt yields, due to the timing of the PWLB reset.
- → The overall curve remains steep, with short and medium rates seeing the largest upward pressure.
NEXT ON THE DIARY
- → 00:01 Tue: BRC Retail Sales Monitor YoY (Forecast: 2.90%; Previous: 3.40%)
- → 09:00 Tue: BoE Governor Bailey Speech (MEDIUM)
Markets responded to global geopolitical developments, with borrowing costs for UK local authorities ending the day higher at the front end and little changed further out.
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.