PWLB briefing
End of Day Wrap-Up
UK gilt yields ended modestly lower across the curve, resulting in a small increase in PWLB rates at the afternoon setting.
GILT MOVE SUMMARY
- → 2y: 4.733% (-4bp) — front-end led declines.
- → 10y: 5.358% (-2bp) — modest downward move in the belly.
- → 30y: 5.904% (-2bp) — long end also slightly lower.
- → 50y: 5.311% (-2bp) — parallel move across ultra-long maturities.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.50% | +1bp |
| 5y | 6.01% | +1bp |
| 10y | 6.39% | +1bp |
| 25y | 6.86% | +2bp |
| 50y | 6.56% | +2bp |
WHAT DROVE TODAY
- → US inflation data released at 13:30 showed headline CPI at 3.70% YoY (Actual) vs 3.60% (Forecast) and 3.40% (Previous), and core CPI at 2.60% YoY (Actual) vs 2.50% (Forecast) and 2.40% (Previous).
- → Commentary highlighted that hotter-than-expected US inflation lifted rate hike expectations and drove a sell-off in US Treasuries, with some spillover to global rates.
- → No major UK-specific data or events provided a clear domestic catalyst for gilts; moves were modest and largely in line with global trends.
WHAT THIS MEANS
- → PWLB maturity rates ended the day 1–2bp higher, reflecting the modest upward adjustment in borrowing costs.
- → The move was parallel across the curve, with no significant change in curve shape.
- → Borrowing conditions remain broadly stable, with only minor increases in rates compared to the previous setting.
NEXT ON THE DIARY
- → Thu 07:00: GBP GDP MoM (Forecast: -0.10%)
- → Thu 07:00: GBP GDP 3-Month Avg (Forecast: 0.50%)
- → Thu 07:00: GBP Manufacturing Production MoM (Forecast: -0.10%)
Overall, a modestly firmer day for PWLB rates, with moves driven mainly by global inflation data rather than domestic developments.
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.