PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, leading to mostly unchanged or slightly higher PWLB rates, with only minor moves in key maturities.
GILT MOVE SUMMARY
| Tenor | Yield | Change |
|---|---|---|
| 1y | 4.049% | +5bp |
| 5y | 4.477% | +6bp |
| 10y | 4.929% | +5bp |
| 30y | 5.676% | +4bp |
Gilt yields rose 4–6bp across the curve, with the move led by the short and intermediate tenors.
PWLB CLOSE SNAPSHOT
- → 1y: 5.10% (unch)
- → 5y: 5.46% (unch)
- → 10y: 5.94% (-1bp)
- → 25y: 6.58% (unch)
- → 50y: 6.38% (unch)
PWLB rates were broadly steady, with only a marginal move in the 10y (-1bp) and 2y (+1bp) maturities.
WHAT DROVE TODAY
- → UK data: S&P Global Construction PMI beat expectations (Actual: 44.7, Forecast: 40, Previous: 38.4), indicating a less severe contraction in construction activity.
- → Global context: News flow was dominated by US policy uncertainty and anticipation of upcoming US jobs data, but no direct catalyst for UK gilt moves was evident.
WHAT THIS MEANS
- → PWLB rates: Remained broadly unchanged, with only minor moves in short and intermediate maturities.
- → Borrowing conditions: No material change for local authorities, as rate levels were steady despite the modest rise in underlying gilt yields.
NEXT ON THE DIARY
- → Fri 07:00: GBP Lloyds House Price Index MoM (Forecast: 0.10%)
- → Fri 07:00: GBP Lloyds House Price Index YoY (Forecast: 0.40%)
PWLB borrowing costs finished the day little changed, with no significant shift in funding conditions for local authorities.
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.