End of Day Wrap-Up

UK gilt yields declined modestly across the curve today, leading to a small reduction in PWLB maturity rates at the afternoon setting.

GILT MOVE SUMMARY

• → 2y: 4.374% (-3bp) — front-end yields edged lower.
• → 10y: 4.992% (-4bp) — belly led declines.
• → 30y: 5.690% (-3bp) — long end followed, but with slightly smaller moves.
• → 50y: 5.239% (-2bp) — ultra-long yields saw the smallest change.

PWLB CLOSE SNAPSHOT

• → 1y: 5.18% (unch)
• → 5y: 5.56% (-1)
• → 10y: 6.03% (-1)
• → 25y: 6.63% (-1)
• → 50y: 6.41% (-1)

WHAT DROVE TODAY

The decline in gilt yields was broadly in line with global bond markets, with several news sources attributing the move to a sharp fall in oil prices after the US paused military strikes against Iran. This de-escalation reduced concerns about further supply shocks and inflation, prompting a rally in government bonds. There were no major UK economic data releases or domestic policy developments cited as direct drivers for gilts today.

WHAT THIS MEANS

• → PWLB maturity rates ended the day 1bp lower across most tenors, reflecting the modest decline in gilt yields.
• → The cost of new long-term borrowing for local authorities eased slightly compared to Friday.
• → The move was uniform across the curve, with no significant steepening or flattening.

NEXT ON THE DIARY

• → Calendar is light into the next business day.

PWLB borrowers saw a marginal improvement in funding terms as global risk sentiment stabilised and oil-driven inflation concerns eased.

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.