PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, leading to higher PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 1y: 4.079% (+5bp) — front-end led the move higher.
- → 5y: 4.619% (+5bp) — short and intermediate yields rose in line.
- → 10y: 5.060% (+4bp) — belly of the curve also moved higher.
- → 30y: 5.782% (+2bp) — long end rose, but less than shorter tenors.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.21% | +2bp |
| 5y | 5.63% | +2bp |
| 10y | 6.12% | +2bp |
| 25y | 6.73% | +1bp |
| 50y | 6.52% | +1bp |
WHAT DROVE TODAY
Today's upward move in gilt yields was driven by hawkish commentary from US Federal Reserve officials at the Jackson Hole symposium. Fed Chair Kevin Warsh stated that inflation is not meaningfully slowing and signalled that the central bank "has work to do" unless inflation recedes, reinforcing expectations of a higher-for-longer global rates environment. Cleveland Fed President Beth Hammack also advocated for rate hikes. There were no significant UK data releases today, and eurozone inflation came in above forecast (Actual: 2.40%, Forecast: 2.20%, Previous: 2.10%), adding to the global inflation narrative.
WHAT THIS MEANS
- → PWLB rates increased by +1bp to +3bp across the curve, reflecting higher gilt yields.
- → Borrowing costs for local authorities are now slightly higher than yesterday at all maturities.
- → The move was most pronounced at the short end, but all tenors saw increases.
NEXT ON THE DIARY
- → Monday 13:00: EUR Inflation Rate YoY Prel (Forecast: 3.0%)
- → Tuesday 07:00: GBP Nationwide Housing Prices MoM (Forecast: 0.10%)
- → Tuesday 07:00: GBP Nationwide Housing Prices YoY (Forecast: 2.0%)
PWLB borrowing costs ended the week higher, with global inflation concerns and US central bank commentary the main influences.
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.