PWLB briefing
End of Day Wrap-Up
UK gilt yields rose modestly across most maturities today, resulting in a parallel uptick in PWLB rates at the afternoon setting.
GILT MOVE SUMMARY
- → 1y: 4.033% (-2bp) — short end edged lower, diverging from the rest of the curve.
- → 5y: 4.585% (+4bp) — largest move, with the belly leading the rise.
- → 10y: 5.051% (+3bp) — upward move consistent across intermediate maturities.
- → 30y: 5.812% (+2bp) — long end also higher, but with a slightly smaller increase.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.16% | -1bp |
| 5y | 5.58% | +1bp |
| 10y | 6.08% | +1bp |
| 25y | 6.71% | +1bp |
| 50y | 6.51% | +1bp |
WHAT DROVE TODAY
- → No major UK economic data releases were scheduled today.
- → News coverage highlighted a broad rise in government bond yields across advanced economies, attributed to persistent inflation concerns and geopolitical risks in the Middle East. (Source: Guardian Business)
- → Market commentary noted that the move was led by the belly and long end, with some front-end divergence.
WHAT THIS MEANS
- → PWLB rates ended the day 1bp higher across most maturities, except for a 1bp decline at 1y.
- → The cost of new long-term borrowing for local authorities increased marginally.
- → The shape of the curve remains upward sloping, with the largest moves in the 5–20y sector.
NEXT ON THE DIARY
- → Calendar is light into the next business day.
PWLB borrowing costs finished the day slightly higher in line with the gilt market, with no significant domestic data or events driving the move.
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.