PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day little changed across most maturities, resulting in a modest upward adjustment to PWLB rates.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 2y | 4.379% | -1bp |
| 10y | 5.025% | unch |
| 30y | 5.740% | -1bp |
| 50y | 5.289% | -2bp |
Curve was broadly stable, with minor declines at the very long end and unchanged levels in the belly.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.19% | +2bp |
| 5y | 5.60% | +2bp |
| 10y | 6.08% | +2bp |
| 25y | 6.69% | +2bp |
| 50y | 6.49% | +2bp |
WHAT DROVE TODAY
There were no significant market-moving events for gilts today. The economic calendar was light, with UK labour market data released early showing unemployment steady at 4.90% (Forecast: 5.0%, Previous: 4.90%), employment change at 147K (Forecast: 85K), and average earnings incl. bonus at 4.30% (Forecast: 4.50%, Previous: 4.40%). Gilt yields and the pound were described as steady in market commentary, with no clear reaction to the data or to political developments such as the appointment of John Healey as Chancellor. The 2029 gilt auction cleared at 4.46% (Previous: 4.42%), but this did not materially impact the broader curve.
WHAT THIS MEANS
- → PWLB rates — ended the day 2bp higher across all maturities, reflecting a modest upward adjustment.
- → Borrowing costs — increased slightly, but the move was limited and the curve shape was largely unchanged.
- → Market tone — remained stable, with no clear directional impetus from data or news.
NEXT ON THE DIARY
- → Wed 07:00 — Inflation Rate YoY (Forecast: 2.70%)
- → Wed 07:00 — Core Inflation Rate YoY (Forecast: 2.50%)
- → Wed 07:00 — Inflation Rate MoM (Forecast: 0.10%)
Overall, local authority borrowing costs saw only a minor upward adjustment, with markets awaiting tomorrow's inflation data for further 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.