PWLB briefing
End of Day Wrap-Up
UK gilt yields rose sharply across the curve today, resulting in higher PWLB rates at most maturities and a modest steepening in the short and intermediate segments.
GILT MOVE SUMMARY
- → 1y: 4.173% (+5bp) — front-end led the move higher.
- → 5y: 4.988% (+8bp) — notable rise in the short-to-intermediate sector.
- → 10y: 5.354% (+8bp) — belly moved in line with the short end.
- → 30y: 5.920% (+7bp) — long end also higher, but less than the front.
- → 50y: 5.302% (+3bp) — ultra-long end lagged the move.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.49% | +2bp |
| 5y | 6.01% | +1bp |
| 10y | 6.39% | +1bp |
| 25y | 6.86% | +1bp |
| 50y | 6.54% | -1bp |
WHAT DROVE TODAY
- → No major UK economic data releases today; only speeches from BoE's Ramsden and Chancellor Healey, with no immediate market-moving announcements.
- → News flow was dominated by ongoing geopolitical tensions in the Middle East, with oil prices rising to new highs and UK diesel prices reaching a record 199.18p/litre, fuelling inflation concerns.
- → Global bond yields rose in sympathy with US Treasuries, as markets responded to persistent inflation risks and higher energy costs.
WHAT THIS MEANS
- → PWLB rates ended the day higher across most maturities, with the largest increases at the short end.
- → The cost of new borrowing for local authorities increased modestly, particularly for shorter and intermediate tenors.
- → Ultra-long PWLB rates (50y) bucked the trend, ending slightly lower.
NEXT ON THE DIARY
- → Tue 09:30: GBP Mortgage Approvals (Forecast: 58K; Previous: 56K)
- → Tue 09:30: GBP Mortgage Lending, Consumer Credit, Net Lending to Individuals, M4 Money Supply (various forecasts; see calendar)
Gilt and PWLB rates closed higher across most maturities, reflecting heightened inflation and geopolitical risk concerns.
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.