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: 4.222% (+5bp) — front-end led the move higher.
- → 2y: 4.732% (+7bp) — largest increase on the curve.
- → 10y: 5.413% (+5bp) — belly also moved notably higher.
- → 30y: 5.993% (+2bp) — long end rose, but less than the front.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.50% | +2bp |
| 5y | 6.07% | +2bp |
| 10y | 6.50% | +3bp |
| 25y | 6.99% | +2bp |
| 50y | 6.70% | +3bp |
WHAT DROVE TODAY
- → Oil price surge and global bond sell-off — Brent crude rose 5% to $105.3/bbl amid Middle East tensions and hurricane threats, triggering a wave of selling in global bond markets and pushing UK gilt yields higher.
- → No major UK data surprises — The RICS House Price Balance came in at -32% (forecast: -30%, previous: -28%), but this had limited market impact. No other significant UK releases or policy signals were evident.
WHAT THIS MEANS
- → PWLB rates increased — All key maturities closed higher, with 10y and 50y up by +3bp.
- → Borrowing costs at new cycle highs — Medium-term government borrowing costs reached a 19-year high, as noted in market commentary.
- → Market volatility remains elevated — Moves were driven by global factors rather than domestic data.
NEXT ON THE DIARY
- → No high or medium-importance GBP releases scheduled for tomorrow — Calendar is light into the next business day.
PWLB and gilt yields ended the day higher, reflecting global risk sentiment and energy market disruptions.
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.