End of Day Wrap-Up

UK gilt yields fell across the curve today, leading to a parallel decline in PWLB rates at all maturities.

GILT MOVE SUMMARY

• → 2y: 4.302% (-8bp) — front-end led declines.
• → 10y: 4.987% (-6bp) — consistent downward move in the belly.
• → 30y: 5.718% (-7bp) — long end mirrored the broader curve.
• → Curve shape — declines were broadly parallel, with slightly larger moves at the short and long ends.

PWLB CLOSE SNAPSHOT

• → 1y: 5.17% (-4)
• → 5y: 5.59% (-5)
• → 10y: 6.08% (-5)
• → 25y: 6.70% (-5)
• → 50y: 6.49% (-5)

WHAT DROVE TODAY

• → UK Gilt 2033 auction — cleared at 4.76% (previous: 4.52%), indicating higher funding costs versus the last auction, but this did not prevent yields from falling in the secondary market.
• → No major UK macro data — no domestic economic releases or news directly linked to today's gilt rally.
• → Global context — international newsflow referenced falling US Treasury yields as oil prices eased, but no single UK-specific catalyst was evident.

WHAT THIS MEANS

• → PWLB rates — fell by (-4) to (-5) across all maturities, reducing borrowing costs for local authorities.
• → Gilt yields — declines were broad-based, with the largest moves at the short and long ends.
• → Borrowing conditions — improved modestly compared to yesterday, with lower rates available throughout the curve.

NEXT ON THE DIARY

• → Wednesday 11:00 — CBI Distributive Trades (forecast: -24, previous: -26)

Markets saw a parallel move lower in yields and PWLB rates, with no clear domestic catalyst, leaving borrowing costs modestly lower into tomorrow.

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.