PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, with the move most pronounced at the short end, resulting in a modest decline in PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 1y: 4.292% (+11bp) — front-end led rise.
- → 5y: 4.955% (+6bp) — short and belly tenors higher.
- → 10y: 5.312% (+6bp) — upward move extends into the belly.
- → 30y: 5.896% (-2bp) — long end slightly lower, mild flattening.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.49% | -2bp |
| 5y | 5.97% | -2bp |
| 10y | 6.35% | -2bp |
| 25y | 6.86% | -3bp |
| 50y | 6.65% | -3bp |
WHAT DROVE TODAY
- → No UK economic data was released today to directly influence gilt yields.
- → Global bond markets were volatile, with US 10-year Treasury yields breaching 5% for the first time since 2023 amid concerns over inflation, higher oil prices following a Saudi pipeline shutdown, and expectations of further US rate hikes.
WHAT THIS MEANS
- → PWLB rates ended the day modestly lower across all maturities, despite higher gilt yields at the front end.
- → The cost of new local authority borrowing via PWLB is fractionally cheaper than at the previous close.
- → The curve remains steep from short to long maturities, but with a mild flattening bias at the long end.
NEXT ON THE DIARY
- → Tue 07:00: GBP Unemployment Rate — Forecast: 5.0% (Prev: 4.90%) (HIGH)
- → Tue 07:00: GBP Employment Change — Forecast: 70K (Prev: 83K) (MEDIUM)
- → Tue 07:00: GBP Average Earnings incl. Bonus (3Mo/Yr) — Forecast: 3.90% (Prev: 4.10%) (MEDIUM)
Markets remain sensitive to global developments and upcoming UK labour market data.
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.