PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day little changed across most maturities, with a slight upward bias at the very long end, resulting in marginal increases in PWLB rates.
GILT MOVE SUMMARY
- → 2y: 4.232% (+1bp) — short end broadly stable, minor upward move.
- → 10y: 4.887% (unch) — belly unchanged.
- → 30y: 5.637% (unch) — long end steady.
- → 50y: 5.206% (+1bp) — very long end saw a modest rise.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.10% | +1bp |
| 5y | 5.45% | unch |
| 10y | 5.94% | +1bp |
| 25y | 6.57% | +1bp |
| 50y | 6.37% | +2bp |
WHAT DROVE TODAY
There were no major domestic or international events clearly driving gilt yields today. UK economic data releases were limited to final July PMIs, which showed the services sector returning to growth (Services PMI Final: 52.1 Actual vs 51.8 Forecast, 48.8 Previous; Composite PMI Final: 52.2 Actual vs 52.1 Forecast, 49.3 Previous), but these had only a muted impact. News flow was dominated by corporate earnings and geopolitical developments, but no direct link to gilt market moves was evident.
WHAT THIS MEANS
- → PWLB rates ended marginally higher across most maturities, with the largest move at the 50-year (+2bp).
- → Borrowing costs for local authorities increased slightly, but the overall change was minimal.
- → The yield curve remains broadly stable, with no significant shift in shape.
NEXT ON THE DIARY
- → Thu 09:30: GBP S&P Global Construction PMI (Forecast: 40)
Overall, a quiet session for gilts and PWLB, with only minor upward adjustments to borrowing rates.
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.