PWLB briefing
End of Day Wrap-Up
Gilt yields ended the day little changed across most maturities, resulting in a modest downward adjustment in PWLB rates.
GILT MOVE SUMMARY
- → 1y: 4.065% (+2bp) — mild upward move at the front end.
- → 5y: 4.631% (+1bp) — small increase, consistent with short end.
- → 10y: 5.064% (unch) — stable in the belly.
- → 30y: 5.776% (-1bp) — slight decline at the long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.23% | -1bp |
| 5y | 5.66% | -2bp |
| 10y | 6.13% | -1bp |
| 25y | 6.73% | -1bp |
| 50y | 6.52% | -1bp |
WHAT DROVE TODAY
- → US Non-Farm Payrolls sharply exceeded expectations (Actual: 162K, Forecast: 56K, Previous: 21K), with the unemployment rate steady at 4.10%. This prompted a brief rise in global rate hike expectations, but UK gilts were largely unmoved.
- → No significant UK data or policy developments directly impacted gilt yields; moves were muted and lacked a clear domestic catalyst.
WHAT THIS MEANS
- → PWLB rates ended the day marginally lower across most maturities, reflecting the slight downward bias in longer gilt yields.
- → The overall change in borrowing costs was minimal, with no material shift in market sentiment.
- → The yield curve flattened slightly, with the front end steady to higher and the long end modestly lower.
NEXT ON THE DIARY
- → Mon 07:00 — Lloyds House Price Index YoY (Forecast: 0.10%)
- → Mon 07:00 — Lloyds House Price Index MoM (Forecast: 0.10%)
- → Mon 13:30 — Chancellor John Healey Speech
Market conditions for local authority borrowing were largely unchanged today, with only minor downward adjustments in PWLB rates following a quiet gilt session.
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.