PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, driving PWLB maturity rates higher and increasing local authority borrowing costs.
GILT MOVE SUMMARY
- → 2y: 4.564% (+9bp) — front-end led the move higher.
- → 5y: 4.775% (+10bp) — short and medium tenors saw the largest increases.
- → 10y: 5.176% (+10bp) — belly of the curve matched the short-end in magnitude.
- → 30y: 5.873% (+7bp) — long-end also rose, but less than the front.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.32% | +3bp |
| 5y | 5.77% | +4bp |
| 10y | 6.20% | +3bp |
| 25y | 6.78% | +2bp |
| 50y | 6.57% | +2bp |
WHAT DROVE TODAY
No UK economic data was released today and there were no scheduled domestic events. The sharp rise in gilt yields appears to have been driven by global factors, notably a surge in oil prices (Brent above $100/barrel) and renewed inflation concerns. Multiple news sources highlighted the escalation of the US-Iran conflict and its impact on energy markets, as well as US Treasury actions to address rising yields. However, there is no single UK-specific catalyst evident in today's calendar or news flow.
WHAT THIS MEANS
- → PWLB maturity rates increased by +2bp to +4bp across the curve, with the largest moves at shorter and medium tenors.
- → Local authority borrowing costs are now at their highest levels of the week, reflecting the global repricing of interest rate risk.
- → The move was broad-based, affecting all maturities, with the front end leading.
NEXT ON THE DIARY
- → Thu 00:01: GBP RICS House Price Balance (Forecast: -31%)
PWLB rates ended the day higher in line with gilts, with global inflation and energy concerns the dominant market theme.
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.