PWLB briefing
End of Day Wrap-Up
UK gilt yields fell across the curve today, leading to a broad-based decline in PWLB rates and easing borrowing costs for local authorities.
GILT MOVE SUMMARY
- → 1y: 4.066% (-10bp) — front-end led declines.
- → 10y: 5.317% (-6bp) — belly followed, but with smaller moves.
- → 30y: 5.942% (-1bp) — long end relatively stable.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.46% | -6 |
| 5y | 6.01% | -7 |
| 10y | 6.41% | -7 |
| 25y | 6.91% | -6 |
| 50y | 6.62% | -6 |
WHAT DROVE TODAY
- → UK data: Nationwide House Prices fell -0.20% MoM (Actual, vs Forecast 0.0%, Previous +0.20%) and slowed to +0.80% YoY (vs Forecast 1.30%, Previous 1.60%), indicating softer housing market momentum.
- → Global context: News flow highlighted ongoing volatility in global bond markets, with particular focus on energy price shocks and fiscal concerns in Europe, but no single UK-specific catalyst was dominant.
WHAT THIS MEANS
- → PWLB rates declined by 6–7bp across the curve, reducing borrowing costs for all standard maturities.
- → Front-end gilts led the move lower, with the largest yield declines at short maturities.
- → Long-dated yields were more stable, but still finished the day lower.
NEXT ON THE DIARY
- → No high or medium-impact GBP releases scheduled for tomorrow.
PWLB rates ended the day lower, reflecting the broad decline in gilt yields and easing conditions for local authority borrowers.
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.