PWLB briefing
End of Day Wrap-Up
Gilt yields ended the day little changed across the curve, resulting in a modest decline in PWLB rates for most maturities.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 1y | 4.141% | -1bp |
| 5y | 4.522% | +1bp |
| 10y | 4.973% | unch |
| 30y | 5.687% | +1bp |
| 50y | 5.260% | +1bp |
Moves were muted, with the curve broadly unchanged and minor upward pressure at the long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.20% | -3bp |
| 5y | 5.59% | -2bp |
| 10y | 6.06% | -1bp |
| 25y | 6.65% | -1bp |
| 50y | 6.46% | -1bp |
WHAT DROVE TODAY
- → US inflation data surprised on the downside: June CPI YoY actual 3.50% (forecast 3.80%, previous 4.20%), and Core CPI YoY 2.60% (forecast 2.80%, previous 2.90%). Headline CPI fell -0.40% MoM (forecast -0.10%).
- → Market commentary linked the muted moves to the balance between softer US inflation and ongoing geopolitical tensions in the Middle East, with oil prices elevated but not escalating further today.
WHAT THIS MEANS
- → PWLB rates ended the day slightly lower across all maturities, with the largest move at the very short end (-3bp for 1y).
- → The cost of new borrowing for local authorities eased marginally, but overall rate levels remain elevated.
- → The gilt curve remains broadly flat, with no significant directional bias established today.
NEXT ON THE DIARY
- → Tomorrow 01:00: GBP Chancellor Reeves Mansion House Speech (MEDIUM)
Overall, a subdued session for gilts and PWLB rates, with borrowing costs drifting modestly lower into 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.