PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to a modest fall in PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 1y: 4.092% (-6bp) — declines led by the front end.
- → 5y: 4.588% (-8bp) — mid-curve saw the largest move.
- → 10y: 5.030% (-7bp) — consistent downward shift in the belly.
- → 30y: 5.722% (-7bp) — long end mirrored the move lower.
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.25% | -1bp |
| 5y | 5.64% | -2bp |
| 10y | 6.10% | -1bp |
| 25y | 6.69% | -1bp |
| 50y | 6.47% | -1bp |
WHAT DROVE TODAY
The move lower in gilt yields followed a series of stronger-than-expected UK economic data releases this morning, including:
- → Retail Sales MoM: Actual 1.0% (Forecast: -0.30%, Previous: 1.20%)
- → S&P Global Manufacturing PMI Flash: Actual 52.8 (Forecast: 52, Previous: 52.5)
- → S&P Global Services PMI Flash: Actual 51.8 (Forecast: 49.4, Previous: 48.8)
Despite the upside surprises in growth and activity data, there is no clear evidence in the news flow or calendar to explain the broad-based decline in yields. No major UK-specific risk-off events were reported.
WHAT THIS MEANS
- → PWLB rates ended the day modestly lower across all maturities.
- → The largest reductions were seen in the 3–7 year area, but all key tenors moved down by 1–2bp.
- → Borrowing costs for local authorities eased slightly compared to yesterday.
NEXT ON THE DIARY
- → Monday 11:00 — GBP CBI Distributive Trades (Forecast: -45)
Gilt and PWLB rates closed the week lower, with no clear catalyst for the move despite stronger UK data.
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.