PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, driving PWLB maturity rates higher by 2–3bp and increasing borrowing costs for local authorities.
GILT MOVE SUMMARY
- → 1y: 4.144% (+7bp) — front-end led the move higher.
- → 5y: 4.613% (+11bp) — significant upward shift in short/intermediate maturities.
- → 10y: 5.030% (+10bp) — belly yields also rose markedly.
- → 30y: 5.734% (+7bp) — long-end moved higher, but less than the front.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.21% | +3bp |
| 5y | 5.58% | +3bp |
| 10y | 6.03% | +2bp |
| 25y | 6.64% | +2bp |
| 50y | 6.42% | +2bp |
WHAT DROVE TODAY
- → UK data: Mortgage Approvals for June came in at 58.2K (Forecast: 57.1K, Previous: 56.6K), and M4 Money Supply MoM rose to 0.80% (Forecast: 0.20%, Previous: 0.20%). No other major UK releases.
- → Global backdrop: Market focus was dominated by geopolitical tensions in the Middle East (notably renewed US-Iran hostilities and a 7% oil price jump) and anticipation of tonight's US Federal Reserve rate decision, with commentary highlighting uncertainty over the Fed's stance.
WHAT THIS MEANS
- → PWLB maturity rates rose by 2–3bp across the curve, reflecting the broad-based increase in gilt yields.
- → Borrowing costs for local authorities increased modestly, with the largest moves at the short and intermediate maturities.
- → Market volatility was elevated ahead of the US Fed decision and amid geopolitical headlines.
NEXT ON THE DIARY
- → Thursday 12:00: BoE Interest Rate Decision (Forecast: 3.75%)
- → Thursday 12:00: BoE Monetary Policy Report and MPC Meeting Minutes
- → Thursday 14:15: BoE Governor Bailey Speech
PWLB rates ended the day higher, with market attention now turning to the Bank of England's policy announcements tomorrow.
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.