PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to marginally lower or unchanged PWLB rates at most maturities, with only the longest tenors seeing a slight uptick.
GILT MOVE SUMMARY
- → 1y: 4.000% (-4bp) — front-end led declines.
- → 10y: 4.901% (-6bp) — belly saw the largest move lower.
- → 30y: 5.643% (-4bp) — long end also declined, but less than the belly.
- → 50y: 5.198% (-4bp) — consistent downward move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.15% | -1 |
| 5y | 5.54% | unch |
| 10y | 6.02% | +1 |
| 25y | 6.64% | unch |
| 50y | 6.44% | +1 |
WHAT DROVE TODAY
The decline in gilt yields was not directly linked to any major UK economic data, with only a low-impact Treasury Gilt 2032 auction (Actual: 4.61%) on the calendar. Internationally, news of progress in diplomatic talks to reopen the Strait of Hormuz led to a sharp fall in oil prices, which in turn supported a rally in global government bonds, including gilts. US JOLTs Job Openings (Actual: 7.359M, Forecast: 7.4M, Previous: 7.537M) had little immediate impact on UK rates. No other clear domestic drivers were evident.
WHAT THIS MEANS
- → Short and medium PWLB rates were flat to slightly lower, reflecting the downward move in gilts.
- → Longer-dated PWLB rates (10y and beyond) were unchanged or marginally higher, despite the parallel move lower in long gilts, due to the timing of the PWLB reset.
- → Overall, borrowing costs for local authorities ended the day little changed to modestly lower at the front end, with minimal impact further out.
NEXT ON THE DIARY
- → Wed 09:30: GBP S&P Global Services PMI Final (Forecast: 51.8)
- → Wed 09:30: GBP S&P Global Composite PMI Final (Forecast: 52.1)
- → No high-impact UK releases scheduled until Thursday.
Markets responded mainly to international developments, leaving UK local authority borrowing rates broadly stable at the close.
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.