PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across most of the curve today, leading to modest increases in PWLB rates at key maturities.
GILT MOVE SUMMARY
- → 2y: 4.697% (+9bp) — front-end led the move higher.
- → 10y: 5.233% (+9bp) — belly rose in line with the front end.
- → 30y: 5.762% (+2bp) — long end rose more modestly.
- → 50y: 5.138% (-6bp) — ultra-long yields diverged, ending lower.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.44% | unch |
| 5y | 5.89% | +1bp |
| 10y | 6.23% | unch |
| 25y | 6.71% | +1bp |
| 50y | 6.42% | +1bp |
WHAT DROVE TODAY
- → UK retail sales data surprised to the upside: August MoM +0.50% (Forecast: -0.20%, Previous: -0.50%), YoY +2.40% (Forecast: +1.90%, Previous: +1.20%).
- → No other major UK data or events — the move appears primarily data-driven.
WHAT THIS MEANS
- → PWLB rates ended the day slightly higher at most maturities, reflecting the gilt market’s upward move.
- → Short and medium-term borrowing costs saw the largest increases, while the 10y rate was unchanged.
- → Ultra-long gilt yields diverged, but PWLB 50y still closed +1bp, in line with the broader curve.
NEXT ON THE DIARY
- → Tuesday 11:00 — GBP CBI Industrial Trends Orders (Forecast: -40)
- → Tuesday 07:00 — GBP Public Sector Net Borrowing Ex Banks (Forecast: data not available)
Borrowing costs for local authorities finished the week modestly higher, with the market responding to stronger-than-expected UK retail sales 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.