PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day mixed, with short-dated yields falling and longer maturities edging higher, resulting in a modest downward shift in PWLB rates across the curve.
GILT MOVE SUMMARY
- → 1y: 4.208% (-9bp) — front-end led declines.
- → 5y: 4.980% (+3bp) — modest rise in mid-curve.
- → 10y: 5.319% (unch) — stable in the belly.
- → 30y: 5.922% (+3bp) — long end slightly higher.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.50% | -5bp |
| 5y | 5.99% | -6bp |
| 10y | 6.37% | -4bp |
| 25y | 6.86% | -4bp |
| 50y | 6.64% | -4bp |
WHAT DROVE TODAY
- → UK labour data: Unemployment Rate held at 4.90% (Forecast: 5.0%, Previous: 4.90%). Average Earnings incl. Bonus slowed to 3.90% (Forecast: 3.90%, Previous: 4.20%).
- → Gilt auctions: 2029 and 2040 auctions cleared at higher yields (2029: 4.82% vs prev. 4.46%; 2040: 5.64% vs prev. 5.05%).
- → Global context: News flow focused on US Treasury yields reaching multi-year highs ahead of the Fed decision, but no direct UK-specific catalyst was evident.
WHAT THIS MEANS
- → PWLB rates fell by 3–6bp across the curve, with the largest declines at the short and intermediate maturities.
- → Shorter-dated borrowing costs saw the most relief, reflecting the front-end led move in gilts.
- → Longer-dated PWLB rates also declined modestly, despite a slight rise in long gilt yields, due to the timing and averaging of PWLB resets.
NEXT ON THE DIARY
- → Wed 07:00: GBP Inflation Rate YoY (Forecast: 3.10%)
- → Wed 07:00: GBP Core Inflation Rate YoY (Forecast: 2.70%)
PWLB rates finished the day lower, with front-end moves dominating, as markets await tomorrow’s UK inflation data and the US Federal Reserve decision.
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.