PWLB briefing
End of Day Wrap-Up
UK gilt yields rose modestly across the curve today, resulting in small downward or unchanged adjustments to most PWLB maturity rates.
GILT MOVE SUMMARY
- → 1y: 4.126% (+5bp) — front-end led the move higher.
- → 5y: 4.516% (+3bp) — moderate upward shift in the short to intermediate sector.
- → 10y: 4.969% (+3bp) — parallel move in the belly.
- → 30y: 5.668% (+3bp) — long end also higher, maintaining curve shape.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.12% | -1bp |
| 5y | 5.53% | unch |
| 10y | 6.00% | -1bp |
| 25y | 6.61% | unch |
| 50y | 6.41% | -1bp |
WHAT DROVE TODAY
Today's modest upward move in gilt yields occurred alongside a mixed set of UK economic data. May GDP printed at +0.10% MoM (in line with forecast, previous -0.10%), while the 3-month average was slightly above expectations at +0.70% (forecast +0.50%). Manufacturing production surprised to the upside at +0.10% MoM (forecast -0.20%), but industrial production disappointed at -0.50% MoM (forecast -0.10%). The 2036 gilt auction cleared at 5.04%, higher than the previous 4.86%. There was no clear single driver for the move, with broader market commentary highlighting ongoing geopolitical risks and stabilisation in global bond yields after recent declines.
WHAT THIS MEANS
- → PWLB maturity rates ended the day slightly lower or unchanged, despite the upward move in gilts.
- → The curve remains broadly stable, with no significant steepening or flattening.
- → Borrowing costs for local authorities saw minimal change on the day.
NEXT ON THE DIARY
- → No HIGH or MEDIUM GBP releases scheduled for the next business day (Friday).
Overall, local authority borrowing conditions were little changed today, with only minor adjustments to PWLB rates as the market digested mixed domestic data and stable global yields.
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.