PWLB briefing
End of Day Wrap-Up
UK gilt yields edged lower across the curve today, resulting in broadly unchanged PWLB rates with only a marginal move at the very long end.
GILT MOVE SUMMARY
- → 1y: 4.038% (-1bp) — Modest decline at the front end.
- → 5y: 4.486% (-2bp) — Slightly larger move in the short-to-intermediate sector.
- → 10y: 4.952% (-2bp) — Belly of the curve saw a similar move to 5y.
- → 30y: 5.697% (-1bp) — Long end marginally lower, with a parallel shift across maturities.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.14% | unch |
| 5y | 5.53% | unch |
| 10y | 6.01% | unch |
| 25y | 6.64% | unch |
| 50y | 6.44% | unch |
PWLB rates were unchanged across all maturities except for a 1bp rise at 40y, which is not a standard reference tenor for most borrowers.
WHAT DROVE TODAY
- → UK GDP data — Monthly GDP for June beat expectations at +0.30% (Forecast: 0.0%, Previous: 0.0%), and YoY growth was 1.20% (Forecast: 1.10%, Previous: 0.90%). Business investment also surprised positively at +1.70% QoQ (Forecast: -0.50%).
- → Global risk sentiment — News flow highlighted softer US inflation (PPI MoM actual 0.0% vs forecast 0.20%) and reduced rate hike expectations, supporting a mild rally in global bonds.
WHAT THIS MEANS
- → PWLB rates — Remained unchanged at key tenors, reflecting the small downward shift in underlying gilt yields.
- → Borrowing costs — No material change for local authorities, with rates holding near recent highs.
NEXT ON THE DIARY
- → No high or medium-importance GBP releases scheduled for Friday, 14 August.
Overall, a quiet session with little change in borrowing conditions as markets digested stronger UK growth data and softer US inflation prints.
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.