PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, driving PWLB maturity rates higher by 3–4bp and increasing borrowing costs for local authorities.
GILT MOVE SUMMARY
- → 2y: 4.393% (+7bp) — front-end led the move higher.
- → 10y: 5.048% (+7bp) — belly matched the front-end rise.
- → 30y: 5.774% (+6bp) — long end also moved higher, though slightly less than shorter tenors.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.20% | +4bp |
| 5y | 5.58% | +4bp |
| 10y | 6.05% | +3bp |
| 25y | 6.67% | +3bp |
| 50y | 6.45% | +3bp |
WHAT DROVE TODAY
- → No major UK data releases today; Nationwide house price data (YoY 1.80% vs 1.90% f/c) was close to forecast and did not move markets.
- → The move was part of a global selloff in government bonds, with US Treasury yields rising after hawkish commentary from several Fed officials calling for higher rates to curb inflation.
WHAT THIS MEANS
- → PWLB maturity rates ended the day 3–4bp higher across the curve.
- → Borrowing costs for local authorities increased modestly compared to yesterday.
- → The move was broad-based, with no tenor immune from the rise in yields.
NEXT ON THE DIARY
- → Monday 09:30 — S&P Global Manufacturing PMI Final (Forecast: 52.8)
PWLB rates closed higher in line with the gilt market, reflecting global rate pressures and a risk-off tone in fixed income.
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.