PWLB briefing
End of Day Wrap-Up
UK gilt yields ended mixed with a modest flattening bias, leaving PWLB rates slightly higher at the short end and broadly steady further out.
GILT MOVE SUMMARY
- → 2y: 4.785% (+6bp) — front-end led with notable upward move.
- → 10y: 5.350% (unch) — belly stable on the day.
- → 30y: 5.848% (-5bp) — long end declined, contributing to curve flattening.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.55% | +1bp |
| 5y | 6.06% | +2bp |
| 10y | 6.42% | +1bp |
| 25y | 6.85% | unch |
| 50y | 6.55% | unch |
WHAT DROVE TODAY
- → UK labour data surprised positively: Unemployment Rate fell to 4.70% (Forecast: 4.90%, Previous: 4.90%), Employment Change was +102K (Forecast: +20K), and wage growth slowed to 3.70% (Forecast: 3.80%, Previous: 3.90%).
- → Gilt auction: The 2036 auction cleared at 5.42% (Previous: 5.38%), indicating slightly higher funding costs.
- → No single dominant news driver: Broader market commentary focused on global risk themes and French fiscal concerns, but UK moves were more data-driven.
WHAT THIS MEANS
- → Short and medium PWLB rates edged up, reflecting higher front-end gilt yields.
- → Long-dated PWLB rates were unchanged, as long gilts rallied.
- → Borrowing costs remain near recent highs, with the curve slightly flatter.
NEXT ON THE DIARY
- → Wed 07:00: Inflation Rate YoY (Forecast: 3.40%)
- → Wed 07:00: Core Inflation Rate YoY (Forecast: 2.80%)
- → Wed 14:00: BoE Gov Bailey Speech
PWLB rates finished the day modestly higher at the short end and steady further out, with market focus turning to tomorrow's inflation data.
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.