PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to a largely unchanged PWLB rate sheet with only minor moves at the very short and 10-year points.
GILT MOVE SUMMARY
- → 2y: 4.318% (-5bp) — front-end led the move lower.
- → 10y: 4.946% (-5bp) — belly followed, with similar declines.
- → 30y: 5.659% (-3bp) — long end also lower, but less than short maturities.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.18% | +1bp |
| 5y | 5.54% | unch |
| 10y | 6.01% | +1bp |
| 25y | 6.61% | unch |
| 50y | 6.39% | unch |
WHAT DROVE TODAY
- → UK data was light: Shop Price Inflation slowed to 0.90% (Forecast/Prev: 1.20%), and gilt tenders saw 2028 at 4.09% (prev 3.99%) and 2040 at 5.33%.
- → Global context: News flow focused on falling oil prices and a risk-off tone in equities, but no direct catalyst for gilts was evident. Markets are awaiting tomorrow’s US Fed decision.
WHAT THIS MEANS
- → PWLB rates ended almost entirely unchanged, with only the 1y and 10y points moving by +1bp.
- → Gilt yields declined across the curve, but the moves were not large enough to materially lower PWLB costs at today’s fixings.
- → Borrowing conditions remain steady with no significant change in funding costs for local authorities.
NEXT ON THE DIARY
- → Wed 09:30: Mortgage Approvals (Forecast: 56.5K)
- → Thu 12:00: Bank of England Interest Rate Decision (Forecast: 3.75%)
No material shift in local authority borrowing costs today, with markets largely in wait-and-see mode ahead of central bank decisions.
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.