Afternoon Rate Update

Headline: PWLB Rates Take a Dip—Not Quite a Plunge!

Notice Date: 10 December 2025, PM Reset at 12:30

Maturity Rates

• 1y: 4.69% (-2bps)
• 3y: 4.83% (0bps)
• 5y: 5.03% (0bps)
• 10y: 5.58% (-1bps)
• 25y: 6.17% (0bps)
• 50y: 5.94% (0bps)

Rates have decreased slightly, with the 1-year rate down by 2 basis points. The overall movement remains modest, indicating a stable borrowing environment.

Afternoon Context

This morning’s GBP Treasury Gilt 2035 Auction resulted in an actual yield of 0.05%, significantly lower than the previous yield of 4.61%. This indicates a shift in market sentiment, potentially driven by anticipation surrounding the Federal Reserve's upcoming rate decision. Meanwhile, European equities have shown mixed performance, with investors remaining cautious ahead of the Fed's announcement. The overall market reaction suggests that UK gilt yields may remain stable as traders digest these developments.

Calendar Events

Today’s Releases:

• 10:30am: GBP Treasury Gilt 2035 Auction - Actual: 0.05% (Previous: 4.61%)

Remaining Today:

• No further significant economic releases today.

This Week Ahead:

• Tomorrow: GBP RICS House Price Balance - 00:01 - Forecast: -0.20
• Tomorrow: GBP BOE Kroszner Speech - 09:00
• Friday: GBP Industrial Production MoM - Forecast: 0.01
• Friday: GBP Manufacturing Production MoM - Forecast: 0.01
• Friday: GBP GDP MoM - Forecast: 0.000

This commentary is provided for informational purposes only and should not be construed as financial advice. Market conditions can change rapidly, and you should always verify current rates directly with the PWLB or through official channels before making borrowing decisions. Past performance is not indicative of future results.

Until next time, may your treasury decisions be as sound as your spreadsheets!