PWLB briefing
End of Day Wrap-Up
Gilt yields ended the day little changed across most maturities, resulting in a flat to marginally softer close for PWLB rates.
GILT MOVE SUMMARY
| Tenor | Yield | Change | Comment |
|---|---|---|---|
| 2y | 4.41% | +3bp | Mild front-end upward pressure |
| 5y | 4.61% | +2bp | Short-dated yields slightly higher |
| 10y | 5.03% | +1bp | Belly broadly steady |
| 30y | 5.74% | -1bp | Long end marginally softer |
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.19% | unch |
| 5y | 5.61% | unch |
| 10y | 6.08% | unch |
| 25y | 6.69% | unch |
| 50y | 6.48% | -1bp |
WHAT DROVE TODAY
There was no clear directional driver for gilts today. The only notable domestic data was June CPI, which came in at 2.60% y/y (Forecast: 2.70%, Previous: 2.80%), showing a slightly softer inflation print. However, core CPI was in line with expectations at 2.60% y/y. No major UK or global news directly impacted gilt yields, and broader market commentary focused on external themes such as oil prices and global earnings, with little direct read-across to UK rates.
WHAT THIS MEANS
- → PWLB rates — Ended the day essentially unchanged across most maturities, with only the 50y rate down (-1bp).
- → Borrowing costs — Remained stable, with no material shift in funding conditions for local authorities.
- → Yield curve — Slight flattening at the long end, but overall curve shape was little changed.
NEXT ON THE DIARY
- → Thu 11:00 — GBP CBI Business Optimism Index (Forecast: -40)
- → Thu 11:00 — GBP CBI Industrial Trends Orders (Forecast: -40)
Overall, local authority borrowing rates were steady, with no significant market or data-driven catalysts today.
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.