PWLB briefing
End of Day Wrap-Up
UK gilt yields declined modestly across the curve today, leading to a small reduction in PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 2y: 4.269% (-2bp) — modest decline at the front end.
- → 10y: 4.921% (-2bp) — parallel move in the belly.
- → 30y: 5.662% (-1bp) — long end slightly firmer.
- → 50y: 5.230% (-1bp) — small move lower at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.13% | -1bp |
| 5y | 5.50% | -1bp |
| 10y | 5.98% | -2bp |
| 25y | 6.61% | -2bp |
| 50y | 6.41% | -1bp |
WHAT DROVE TODAY
- → US July Non-Farm Payrolls: Actual -23K vs Forecast 80K (Previous 20K). The surprise decline in US jobs and downward revisions to prior months contributed to a global rates rally, with market commentary highlighting reduced expectations for further US rate hikes.
- → UK Data: Lloyds House Price Index flat MoM (0.0%, Forecast 0.10%), BBA Mortgage Rate unchanged at 6.60%. No material impact on gilts.
WHAT THIS MEANS
- → PWLB rates ended the day 1–2bp lower across the curve, reflecting the parallel move in gilts.
- → Borrowing costs for local authorities are fractionally cheaper than yesterday at all standard maturities.
- → No significant curve reshaping was observed; moves were broadly parallel.
NEXT ON THE DIARY
- → Tuesday 00:01 — GBP BRC Retail Sales Monitor YoY (Forecast: 1.80%)
A quiet session for gilts and PWLB, with moves driven mainly by softer US labour data and no material domestic developments.
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.