End of Day Wrap-Up

UK gilt yields declined modestly across the curve today, leading to a parallel reduction in PWLB maturity rates.

GILT MOVE SUMMARY

• → 2y: 4.297% (-2bp) — modest decline at the front end.
• → 10y: 4.961% (-3bp) — belly led the move lower.
• → 30y: 5.699% (-3bp) — long end matched the belly's decline.
• → 50y: 5.266% (-2bp) — parallel move at the ultra-long end.

PWLB CLOSE SNAPSHOT

• → 1y: 5.18% (-3bp)
• → 5y: 5.59% (-2bp)
• → 10y: 6.07% (-2bp)
• → 25y: 6.69% (-2bp)
• → 50y: 6.49% (-2bp)

WHAT DROVE TODAY

• → Data releases were limited — UK BRC Retail Sales Monitor YoY came in at 1.0% (Forecast: 1.50%, Previous: 1.70%), but this had only medium relevance and little immediate impact on gilts.
• → Market focus remained on upcoming US inflation data — News flow highlighted anticipation for tomorrow’s US CPI, with global bond markets subdued ahead of the release.

WHAT THIS MEANS

• → PWLB rates ended lower across all maturities, reducing borrowing costs slightly for local authorities compared to yesterday.
• → The move was parallel, with no significant steepening or flattening of the curve.
• → No major domestic data or events provided a clear catalyst for today’s moves.

NEXT ON THE DIARY

• → Tomorrow 10:00: GBP Index-linked Treasury Gilt 2035 Auction (LOW)
• → Thursday 07:00: GBP GDP MoM (Forecast: -0.10%)

PWLB borrowing costs finished the day modestly lower, reflecting a subdued session ahead of key US inflation data tomorrow.

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.