PWLB briefing
End of Day Wrap-Up
UK gilt yields fell sharply across the curve today, leading to a broad-based decline in PWLB rates.
GILT MOVE SUMMARY
- → 2y: 4.606% (-14bp) — front-end led declines.
- → 10y: 5.233% (-11bp) — belly followed the downward move.
- → 30y: 5.860% (-6bp) — long end also lower, but less pronounced.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.43% | -4bp |
| 5y | 5.93% | -4bp |
| 10y | 6.32% | -3bp |
| 25y | 6.85% | -2bp |
| 50y | 6.62% | -3bp |
WHAT DROVE TODAY
- → UK inflation for August came in at 3.10% YoY (Forecast: 3.10%, Previous: 2.90%), confirming expectations but showing a notable acceleration from July.
- → Market focus shifted to the upcoming US Federal Reserve decision, with global bond markets rallying ahead of the announcement and amid some relief in risk assets.
WHAT THIS MEANS
- → PWLB rates declined by 2–4bp across the curve, reducing borrowing costs modestly for local authorities.
- → The move was most pronounced at the short end, reflecting the sharper drop in short-dated gilt yields.
- → Borrowing costs remain elevated in absolute terms, but today's shift provided some relief from recent highs.
NEXT ON THE DIARY
- → Thu 12:00 — BoE Interest Rate Decision (Forecast: 3.75%)
- → Thu 12:00 — MPC Meeting Minutes and Vote Split
- → Fri 07:00 — Retail Sales MoM (Forecast: -0.20%)
Markets will be watching the Bank of England decision closely tomorrow following today's moves.
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.