End of Day Wrap-Up

UK gilt yields rose across the curve today, resulting in modest increases in PWLB maturity rates.

GILT MOVE SUMMARY

• → 2y: 4.34% (+4bp) — short end moved higher in line with broader curve.
• → 10y: 5.03% (+4bp) — belly yields rose, mirroring moves in the US Treasury market.
• → 30y: 5.77% (+5bp) — long end saw slightly larger gains, maintaining a mild steepening bias.
• → 50y: 5.32% (+5bp) — ultra-long yields also up, consistent with the rest of the curve.

PWLB CLOSE SNAPSHOT

WHAT DROVE TODAY

The move higher in gilt yields tracked global bond markets, with US Treasury yields rising after the release of several US economic data points. Notably, US Personal Spending (Actual: 0.20% vs Forecast: 0.10%), Personal Income (Actual: 0.40% vs Forecast: 0.20%), and Durable Goods Orders (Actual: 1.10% vs Forecast: 0.50%) all exceeded expectations, while the Core PCE Price Index matched forecasts at 0.20% MoM. Market commentary highlighted that these releases did little to alter expectations for US monetary policy, but the overall tone was risk-averse, with yields drifting higher. There were no significant UK-specific data or events driving gilt moves today.

WHAT THIS MEANS

• → PWLB maturity rates ended the day 1–2bp higher across the curve, reflecting the parallel move in gilts.
• → Borrowing costs for local authorities are modestly higher than yesterday, with the largest increases seen in the 2–7 year area.
• → The move was driven by international factors, with little domestic data impact.

NEXT ON THE DIARY

• → No high or medium-importance GBP releases scheduled for the next business day.

PWLB rates closed modestly higher, with moves reflecting global market developments rather than domestic factors.

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.