End of Day Wrap-Up

UK gilt yields ended marginally higher across the curve, while PWLB rates finished modestly lower, reflecting the timing of the rate resets rather than a divergence in underlying market direction.

GILT MOVE SUMMARY

• → 2y: 4.305% (+1bp) — Modest upward move at the front end.
• → 10y: 4.968% (+1bp) — Belly of the curve also slightly higher.
• → 30y: 5.708% (+1bp) — Long end up in line with the rest of the curve.

PWLB CLOSE SNAPSHOT

• → 1y: 5.14% (‑1bp)
• → 5y: 5.51% (‑3bp)
• → 10y: 6.00% (‑2bp)
• → 25y: 6.62% (‑3bp)
• → 50y: 6.42% (‑3bp)

PWLB rates reflect the twice-daily reset and track underlying gilt movements.

WHAT DROVE TODAY

There was no clear domestic catalyst for gilts, with UK economic data limited to a low-impact index-linked gilt auction (2035, 1.73% vs previous 1.51%). Internationally, US inflation data was in line with expectations (US CPI YoY actual: 3.40%, forecast: 3.40%, previous: 3.50%; Core CPI YoY actual: 2.50%, forecast: 2.50%, previous: 2.60%), which contributed to a subdued global rates backdrop. News flow was dominated by US inflation, ongoing Middle East tensions, and AI-related equity moves, but none had a pronounced impact on UK rates today.

WHAT THIS MEANS

• → Borrowing costs via PWLB finished modestly lower across all key maturities.
• → The move was minor, with changes of (‑1bp) to (‑3bp) on PWLB rates, reflecting a stable rates environment.
• → No material shift in market sentiment or volatility was observed.

NEXT ON THE DIARY

• → Thu 07:00: GBP GDP MoM (HIGH) — Forecast: 0.0%
• → Thu 07:00: GBP GDP Growth Rate YoY Prel (HIGH) — Forecast: 1.10%
• → Thu 07:00: GBP GDP Growth Rate QoQ Prel (HIGH) — Forecast: 0.40%

Overall, local authority borrowing costs saw a slight improvement today amid a quiet session for UK 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.