Morning Rate Update

Headline: PWLB Rates Hold Steady with a Dash of Movement

Notice Date: 02 January 2026, AM reset at 09:02

Maturity Rates

• 1y: 4.57% (0)
• 3y: 4.75% (-1)
• 5y: 4.97% (-1)
• 10y: 5.54% (0)
• 25y: 6.16% (1)
• 50y: 5.92% (1)

Notably, the 25-year and 50-year rates have seen a slight uptick of 1 basis point, while the 3-year and 5-year rates dipped by 1 basis point. Overall, the rates are largely stable, reflecting a calm start to the year.

Market Context

Today's PWLB rates indicate a relatively flat yield curve, with only minor fluctuations across maturities. In economic news, the Nationwide Housing Prices YoY came in at 0.6%, below the forecast of 1.4%, while the MoM figure showed a 0.4% decline against a forecast of 0.3%. This softer housing data may influence sentiment in the gilt market as it reflects ongoing challenges in the property sector. Additionally, the FTSE 100 has opened positively, buoyed by a resilient property market overall in 2025, despite the recent dip. The backdrop of stable mortgage rates and a cautious consumer sentiment continues to shape the economic landscape.

Calendar Events

Today's Releases:

• GBP Nationwide Housing Prices YoY - Actual: 0.6% (Forecast: 1.4%, Previous: 1.8%)
• GBP Nationwide Housing Prices MoM - Actual: -0.4% (Forecast: 0.3%, Previous: 0.3%)

These figures are significant as they may influence gilt yields and borrowing costs for local authorities.

Remaining Today:

• No significant economic releases scheduled.

This Week Ahead:

• Monday 09:30: GBP BoE Consumer Credit - Forecast: Previous: 1.12B*
• Monday 09:30: GBP Mortgage Approvals - Previous: 65.02k
• Monday 09:30: GBP Mortgage Lending - Previous: 4.27B
• Monday 09:30: GBP Net Lending to Individuals MoM - Previous: 5.40B
• Monday 09:30: GBP M4 Money Supply MoM - Previous: -0.00
• Tuesday 09:30: GBP S&P Global Composite PMI Final - Forecast: 52.1

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!