PWLB briefing
End of Day Wrap-Up
UK gilt yields rose across the curve today, resulting in higher PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 1y: 4.177% (+4bp) — front-end yields rose, leading the move.
- → 10y: 5.353% (+5bp) — belly yields climbed in line with the broader curve.
- → 30y: 5.945% (+6bp) — long-end yields saw the largest increases.
- → 50y: 5.349% (+6bp) — gains were consistent across the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.45% | +2bp |
| 5y | 5.97% | +3bp |
| 10y | 6.37% | +2bp |
| 25y | 6.86% | +1bp |
| 50y | 6.57% | +1bp |
WHAT DROVE TODAY
- → UK data: S&P Global Services PMI Final (Sep) came in at 52.1 (Forecast: 51.7, Previous: 52.5), and Composite PMI at 52.0 (Forecast: 51.7, Previous: 52.5), both showing modest growth but slightly softer than previous readings.
- → Global context: News flow highlighted continued concerns over European fiscal risks, higher US yields, and ongoing geopolitical tensions, but no single domestic event was clearly linked to today’s gilt moves.
WHAT THIS MEANS
- → PWLB rates increased by +1bp to +3bp across the curve, reflecting the rise in underlying gilt yields.
- → Borrowing costs for local authorities ended the day at new cycle highs for most maturities.
- → Yield curve shape was broadly parallel, with slightly larger moves at the long end.
NEXT ON THE DIARY
- → Tue 09:30: S&P Global Construction PMI (Forecast: 45.4)
Markets remain focused on global bond volatility and fiscal concerns, with local authority borrowing costs tracking higher in line with gilts.
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.