PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to a modest fall in PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 2y: 4.35% (-1bp) — modest decline at the front end.
- → 10y: 5.04% (-3bp) — belly yields fell slightly more than short tenors.
- → 30y: 5.78% (-4bp) — long-end led the move lower.
- → 40y: 5.75% (-5bp) — largest move at the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.17% | -1bp |
| 5y | 5.61% | -1bp |
| 10y | 6.11% | -1bp |
| 25y | 6.75% | -1bp |
| 50y | 6.55% | -1bp |
WHAT DROVE TODAY
- → UK inflation data released this morning showed headline CPI at 2.90% YoY (Forecast: 2.90%, Previous: 2.60%), with core CPI at 2.60% YoY (Forecast: 2.50%, Previous: 2.60%). The data was in line with expectations but confirmed a recent uptick in inflation.
- → The main catalyst for the move lower in yields was global: US Treasury announced a doubling of long-dated bond buybacks, which triggered a rally in global government bonds, including gilts.
WHAT THIS MEANS
- → PWLB rates fell by (-1bp) across all maturities, reflecting the parallel move lower in gilt yields.
- → Borrowing costs for local authorities ended the day slightly lower than yesterday, with the largest yield declines seen at the long end of the gilt curve.
- → The move was modest, but reversed some of the recent upward pressure on funding costs.
NEXT ON THE DIARY
- → Thu 11:00: GBP CBI Industrial Trends Orders (Forecast: -40)
Gilt and PWLB rates ended the day modestly lower, with global bond market developments outweighing local inflation data.
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.