Morning Rate Update

Headline: "PWLB Rates Slip Slightly, But Not Enough to Raise Eyebrows!"

Notice Date: 29 December 2025
Reset Time: 09:09 AM

Maturity Rates

• 1y: 4.60% (-5bps)
• 3y: 4.77% (-3bps)
• 5y: 4.98% (-3bps)
• 10y: 5.53% (-5bps)
• 25y: 6.14% (-5bps)
• 50y: 5.90% (-5bps)

Rates have dipped slightly across the board, with the most notable movement being a 5bps decrease in the 1-year and 10-year maturities. However, these changes are unlikely to cause any significant shifts in borrowing strategies.

Market Context

The current yield curve reflects a modest downward shift, indicating a slight easing in borrowing costs. Today, there are no significant GBP economic releases scheduled, which may contribute to the subdued market activity. In the news, global markets are reacting to geopolitical tensions and economic forecasts, particularly regarding the UK’s business confidence, which rose five points to 47% in December. This uptick suggests a cautiously optimistic outlook among businesses, although it remains to be seen how this will influence gilt yields moving forward. Additionally, the ongoing discussions around interest rates and inflation in other economies, such as the US, may indirectly affect UK rates as investors seek safe havens.

Calendar Events

TODAY’S RELEASES:

• No significant economic releases scheduled.

REMAINING TODAY:

• No significant economic releases scheduled.

THIS WEEK AHEAD:

• No significant economic releases scheduled.

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!