PWLB briefing
End of Day Wrap-Up
UK gilt yields declined across the curve today, leading to a modest reduction in PWLB rates at all maturities.
GILT MOVE SUMMARY
- → 1y: 4.201% (-8bp) — front-end led the decline.
- → 10y: 5.275% (-3bp) — belly followed with moderate declines.
- → 20y: 5.704% (-7bp) — long end saw larger moves.
- → 50y: 5.118% (-7bp) — declines extended across the ultra-long end.
PWLB CLOSE SNAPSHOT
| Tenor | Rate | Change |
|---|---|---|
| 1y | 5.52% | -1bp |
| 5y | 6.02% | -2bp |
| 10y | 6.36% | -1bp |
| 25y | 6.75% | -2bp |
| 50y | 6.43% | -2bp |
WHAT DROVE TODAY
- → UK data was mixed: CBI Business Optimism Index improved to -27 (Forecast: -38, Previous: -36), but CBI Industrial Trends Orders fell to -32 (Forecast: -20, Previous: -9).
- → Global risk sentiment: News flow was dominated by rising oil prices and Middle East tensions, but UK gilt yields moved lower despite these inflationary pressures.
- → No single clear domestic driver for the gilt rally was evident from today’s UK data or events.
WHAT THIS MEANS
- → PWLB rates ended modestly lower across all maturities, reflecting the downward move in gilt yields.
- → Borrowing costs for local authorities eased slightly, with reductions of up to -2bp depending on tenor.
- → Curve shape saw the largest declines at the very short and long ends, with more modest moves in the belly.
NEXT ON THE DIARY
- → Fri 00:01: GfK Consumer Confidence (Forecast: -15)
- → Fri 07:00: Retail Sales MoM (Forecast: -0.10%)
- → Fri 09:30: S&P Global Services PMI Flash (Forecast: 51.8)
PWLB rates finished the day slightly lower, with the market awaiting key UK confidence and activity data tomorrow.
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.