End of Day Wrap-Up

UK gilt yields rose modestly across the curve today, resulting in a uniform increase in PWLB maturity rates.

GILT MOVE SUMMARY

• → 2y: 4.363% (+1bp) — mild upward move at the front end.
• → 10y: 5.066% (+2bp) — belly saw a slightly larger increase.
• → 30y: 5.802% (+2bp) — long end followed the belly, maintaining a parallel shift.

PWLB CLOSE SNAPSHOT

• → 1y: 5.19% (+1bp)
• → 5y: 5.62% (+1bp)
• → 10y: 6.11% (+1bp)
• → 25y: 6.73% (+1bp)
• → 50y: 6.53% (+1bp)

WHAT DROVE TODAY

• → UK data was limited — The only domestic release, CBI Industrial Trends Orders, came in at -25 (vs forecast -40, previous -45), but this had little observable impact on gilts.
• → Global bond market focus — News flow was dominated by US Treasury buyback plans and ongoing concerns about US fiscal policy, which contributed to a modest upward drift in yields globally, including the UK.

WHAT THIS MEANS

• → PWLB maturity rates ended the day 1bp higher across the curve, reflecting the parallel move in gilts.
• → Borrowing costs for local authorities edged up slightly but remain within recent trading ranges.

NEXT ON THE DIARY

• → Fri 00:01 — GfK Consumer Confidence (forecast: -18)
• → Fri 07:00 — Retail Sales MoM (forecast: -0.50%)
• → Fri 09:30 — S&P Global Services & Manufacturing PMI Flash

A modest parallel rise in yields leaves local authority borrowing costs slightly higher heading into tomorrow's key UK data releases.

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.