PWLB briefing
End of Day Wrap-Up
UK gilt yields declined modestly across the curve today, leading to a largely unchanged PWLB rate sheet with only minor adjustments at select maturities.
GILT MOVE SUMMARY
- → 1y: 4.073% (‑6bp) — front-end led the move lower.
- → 10y: 4.938% (‑2bp) — moderate declines in the belly.
- → 30y: 5.636% (‑4bp) — long end also firmer, but less pronounced than the short end.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.16% | unch |
| 5y | 5.56% | unch |
| 10y | 6.03% | unch |
| 25y | 6.63% | unch |
| 50y | 6.44% | unch |
WHAT DROVE TODAY
- → US inflation data — June PPI came in at ‑0.30% MoM (Forecast: 0.0%, Previous: 0.60%), providing a softer-than-expected read and reinforcing the recent trend of easing US inflation.
- → No major UK data or policy events — The Mansion House speech (01:00) was not market-moving; no other significant UK releases today.
WHAT THIS MEANS
- → PWLB rates — Remained broadly unchanged, with only a 1bp move at 3y and 30y, reflecting the modest downward shift in gilt yields.
- → Borrowing costs — Local authority funding costs were effectively stable, with no material change in available PWLB rates across key maturities.
NEXT ON THE DIARY
- → 07:00 (Thu): GBP GDP MoM — Forecast: 0.10% (Previous: ‑0.10%)
- → 07:00 (Thu): GBP Manufacturing Production MoM — Forecast: ‑0.20% (Previous: 0.40%)
- → 07:00 (Thu): GBP Industrial Production MoM — Forecast: ‑0.10% (Previous: 0.0%)
Gilt and PWLB markets were steady today, with attention now turning to tomorrow’s UK GDP and production data for potential direction.
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.