PWLB briefing
End of Day Wrap-Up
UK gilt yields ended the day lower across the curve, leading to a modest decline in most PWLB rates, with the move led by the long end.
GILT MOVE SUMMARY
- → 2y: 4.720% (+1bp) — short end slightly higher.
- → 5y: 4.994% (-2bp) — modest decline in the mid-curve.
- → 10y: 5.379% (-4bp) — belly led the move lower.
- → 30y: 5.950% (-5bp) — long end saw the largest decline.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.48% | +1bp |
| 5y | 6.02% | +2bp |
| 10y | 6.42% | +1bp |
| 25y | 6.91% | +1bp |
| 50y | 6.61% | +1bp |
WHAT DROVE TODAY
- → No major UK economic data releases today; the only high-impact data was US Michigan Consumer Sentiment (Actual: 46.3, Forecast: 47.6, Previous: 48.1), which came in below expectations.
- → News flow highlighted easing oil prices and a stabilisation in European bond markets after recent volatility, but no single event was clearly linked to the gilt rally.
WHAT THIS MEANS
- → PWLB rates ended the day marginally higher across most maturities, despite a decline in gilt yields at the long end.
- → The curve remains steep, with the largest moves seen in longer-dated gilts, but this was not fully reflected in PWLB rate changes due to the timing of rate setting.
- → Borrowing costs for local authorities remain elevated, with only minor day-on-day changes.
NEXT ON THE DIARY
- → Monday 10:30 — BoE Breeden Speech (LOW)
- → Monday 13:50 — BoE Mann Speech (LOW)
Markets saw a modest bull flattening in gilts, but PWLB rates closed slightly higher, leaving borrowing costs little changed overall.
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.