PWLB briefing
End of Day Wrap-Up
UK gilt yields ended marginally lower across most maturities, leading to a modest decline in PWLB rates at the close.
GILT MOVE SUMMARY
- → 2y: 4.473% (+1bp) — front-end slightly higher, contrasting with longer tenors.
- → 10y: 5.099% (+1bp) — belly saw a minor uptick.
- → 30y: 5.803% (-1bp) — long end drifted lower.
- → 50y: 5.361% (-2bp) — ultra-long yields led the decline.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.27% | -1bp |
| 5y | 5.71% | -1bp |
| 10y | 6.16% | -2bp |
| 25y | 6.76% | -1bp |
| 50y | 6.55% | -1bp |
WHAT DROVE TODAY
- → Gilt auction results: The 2056 gilt auction cleared at 5.82% (Previous: 5.41%), highlighting persistent upward pressure on long-term funding costs.
- → No major UK economic data releases directly impacted rates today; broader market commentary focused on global inflation risks and supply concerns, but no single domestic event drove the move.
WHAT THIS MEANS
- → PWLB rates ended the day 1–2bp lower across most maturities, reflecting the slight downward drift in gilt yields.
- → Long-term borrowing costs remain elevated, with 30y and 50y PWLB rates still near multi-decade highs despite today's minor easing.
- → Intraday volatility was limited, with no material divergence between PWLB resets and underlying gilt moves.
NEXT ON THE DIARY
- → Thu 00:01: RICS House Price Balance (Forecast: -28%)
PWLB rates finished modestly lower, but overall borrowing costs for local authorities remain historically high.
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.