PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day marginally lower across most maturities, leading to a modest decline in PWLB rates.
GILT MOVE SUMMARY
- → 2y: 4.734% (-3bp) — front-end led the move lower.
- → 10y: 5.346% (unch) — belly held steady.
- → 20y: 5.873% (+1bp) — slight upward bias in the long end.
- → 50y: 5.325% (+3bp) — ultra-long yields rose modestly.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.47% | -1bp |
| 5y | 5.98% | -2bp |
| 10y | 6.35% | -2bp |
| 25y | 6.84% | -1bp |
| 50y | 6.53% | -1bp |
WHAT DROVE TODAY
- → UK data: August mortgage approvals fell to 54.9K (Forecast: 56.1K; Previous: 55.9K), indicating softer housing demand. The 2036 gilt auction cleared at 5.38%, up from 5.16% previously.
- → Market context: News flow highlighted ongoing global bond market volatility, with US Treasury yields at multi-year highs and energy prices remaining a focus, but no single domestic event drove gilts decisively.
WHAT THIS MEANS
- → PWLB rates edged down — most tenors finished 1–2bp lower, reflecting the modest decline in gilt yields.
- → Borrowing costs remain elevated — despite the small move lower, absolute rate levels are still high by recent standards.
- → Curve shape little changed — minor front-end outperformance, but no material flattening or steepening.
NEXT ON THE DIARY
- → Wed 07:00: Nationwide Housing Prices MoM (Forecast: 0.20%)
- → Wed 07:00: GDP Growth Rate QoQ Final (Forecast: 0.40%)
- → Wed 07:00: Business Investment QoQ Final (Forecast: 1.70%)
PWLB rates finished modestly lower, with no major domestic catalyst, as markets await tomorrow’s UK economic data releases.
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.