Morning Rate Update

Headline

PWLB Rates Take a Breather: Little Movement Across the Board

Notice Details

PWLB Interest Rate Notice Number 485/25
Rates reset at 09:17 AM on December 15, 2025.

Maturity Rates

• 1y: 4.62% (-2bps)
• 3y: 4.76% (-2bps)
• 5y: 4.97% (-1bps)
• 10y: 5.54% (0bps)
• 25y: 6.18% (+1bps)
• 50y: 5.95% (+2bps)

Rates have shown minor adjustments, with the 1-year and 3-year rates both down by 2 basis points, while the 5-year rate dipped by 1 basis point. The 25-year and 50-year rates saw slight increases of 1 and 2 basis points, respectively, indicating a relatively stable environment.

Market Context

The yield curve appears to be flattening slightly, with short-term rates decreasing while longer-term rates remain stable or increase marginally. Today, no significant economic data has been released, but the market is anticipating upcoming figures that could influence sentiment. In the news, the Bank of England is expected to cut rates to 3.75% as economic data eases inflation concerns, which may have implications for gilt yields. Additionally, the UK regulator is set to ease mortgage rules for first-time buyers, potentially impacting housing market dynamics. Overall, the market remains cautious amid these developments, with little movement in PWLB rates reflecting a wait-and-see approach.

Calendar Events

TODAY’S RELEASES:

• No significant economic releases scheduled.

REMAINING TODAY:

• No significant economic releases scheduled.

THIS WEEK AHEAD:

• Tomorrow, December 16: Unemployment Rate - 07:00 - Forecast: 5.1%
• Tomorrow, December 16: Average Earnings incl. Bonus (3Mo/Yr) - 07:00 - Forecast: 4.5%
• Tomorrow, December 16: S&P Global Services PMI Flash - 09:30 - Forecast: 52
• Tomorrow, December 16: Treasury Gilt 2031 Auction - 10:00 - Previous: 4.09%

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, keep your treasury operations as smooth as a well-oiled machine!