PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, leading to modest declines in PWLB rates at all maturities.
GILT MOVE SUMMARY
| Tenor | Yield | Change | Comment |
|---|---|---|---|
| 2y | 4.293% | -10bp | Front-end led declines |
| 10y | 4.951% | -11bp | Largest move on the curve |
| 20y | 5.600% | -9bp | Belly followed lower |
| 50y | 5.240% | -8bp | Long end also lower |
PWLB CLOSE SNAPSHOT
| Maturity | Rate | Change |
|---|---|---|
| 1y | 5.14% | unch |
| 5y | 5.53% | -1bp |
| 10y | 6.01% | -1bp |
| 25y | 6.63% | -1bp |
| 50y | 6.42% | -1bp |
WHAT DROVE TODAY
- → Sharp decline in oil prices — Brent crude fell over 5% after President Trump called off planned strikes on Iran and signalled renewed peace talks, easing inflation concerns and supporting a rally in government bonds.
- → UK data: S&P Global Manufacturing PMI Final — Actual: 51.9 (Forecast: 52.8, Previous: 52.5); a softer reading, but not a major market mover.
- → US data: ISM Manufacturing PMI — Actual: 55.6 (Forecast: 54, Previous: 53.3); stronger than expected, but overshadowed by geopolitical developments and oil moves.
WHAT THIS MEANS
- → PWLB rates — Ended the day modestly lower by (-1bp) to (-2bp) across most maturities, reflecting the sharp rally in gilts.
- → Borrowing costs — Marginally cheaper for local authorities compared to Friday, with the largest moves seen in the 3–15y area.
- → Market tone — The move was driven primarily by global risk sentiment and oil, rather than domestic data.
NEXT ON THE DIARY
- → No HIGH or MEDIUM GBP releases — Calendar is light into the next business day.
PWLB rates closed modestly lower, tracking the gilt rally driven by easing geopolitical tensions and falling oil prices.
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.