PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to a modest reduction in PWLB rates for all maturities.
GILT MOVE SUMMARY
- → 1y: 4.044% (-10bp) — front-end led declines.
- → 10y: 4.984% (-6bp) — belly followed, but with a smaller move.
- → 30y: 5.718% (-2bp) — long end saw only minor declines.
- → 50y: 5.255% (-3bp) — ultra-long yields modestly lower.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.21% | -2bp |
| 5y | 5.60% | -2bp |
| 10y | 6.07% | -2bp |
| 25y | 6.68% | -1bp |
| 50y | 6.47% | -1bp |
WHAT DROVE TODAY
The main event was the Bank of England’s decision to hold its policy rate at 3.75% (Actual: 3.75%, Forecast: 3.75%, Previous: 3.75%). The MPC vote showed a slight shift, with 6 voting to hold (Forecast: 7, Previous: 7) and 3 voting for a hike (Forecast: 2, Previous: 2). Governor Bailey and Deputy Governor Lombardelli both emphasised ongoing uncertainty, particularly around energy prices and the labour market, but signalled no immediate bias toward further tightening. There were no major surprises from the economic calendar or news flow directly impacting gilts beyond the BoE, and no significant UK data releases after the decision. Moves in US Treasuries and global markets were referenced, but the gilt move was led by domestic monetary policy developments.
WHAT THIS MEANS
- → PWLB rates ended the day 1–2bp lower across the curve, reflecting the parallel move in gilts.
- → The largest reductions were seen at the short and medium maturities, with the long end relatively stable.
- → Borrowing costs for local authorities are fractionally lower than yesterday, but remain near recent highs.
NEXT ON THE DIARY
- → Fri 07:00: GBP Nationwide Housing Prices YoY (Forecast: 1.90%)
- → Fri 07:00: GBP Nationwide Housing Prices MoM (Forecast: 0.10%)
PWLB borrowing rates eased modestly today, with the market focused on the Bank of England’s steady policy stance and ongoing economic uncertainty.
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.