PWLB briefing
End of Day Wrap-Up
UK gilt yields fell across the curve today, leading to a modest downward adjustment in most PWLB rates, with the largest moves concentrated at the long end.
GILT MOVE SUMMARY
| Tenor | Yield | Change | Comment |
|---|---|---|---|
| 1y | 4.221% | -2bp | Mild decline at the front end |
| 5y | 4.954% | -3bp | Curve softening extends through the belly |
| 10y | 5.301% | -4bp | Declines deepen in the belly |
| 30y | 5.844% | -6bp | Long end leads the move lower |
| 50y | 5.247% | -6bp | Largest declines at the ultra-long end |
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.48% | +2bp |
| 5y | 5.96% | +1bp |
| 10y | 6.32% | unch |
| 25y | 6.78% | -1bp |
| 50y | 6.48% | unch |
WHAT DROVE TODAY
- → UK data: August GDP surprised to the upside at +0.10% MoM (Forecast: -0.10%, Previous: +0.40%), with 3-month average at +0.70% (Forecast: +0.50%).
- → Global risk sentiment: A sharp sell-off in technology shares and concerns over US inflation (US PPI Actual: +1.30% MoM vs Forecast: +0.50%) drove a flight to quality into government bonds, supporting gilt prices.
WHAT THIS MEANS
- → PWLB rates ended the day slightly lower or unchanged across most maturities, with the largest reductions at the long end.
- → Short and medium PWLB rates were little changed or marginally higher, reflecting the timing of resets relative to intraday gilt moves.
- → Overall, borrowing costs for local authorities eased modestly at longer maturities.
NEXT ON THE DIARY
- → Fri 04:30: USD Fed Chair Warsh Speech (HIGH)
- → Fri 03:00: GBP BoE Gov Bailey Speech (MEDIUM)
Gilt and PWLB markets responded to both domestic data and global risk sentiment, with long-dated borrowing costs easing into the close.
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.