Afternoon Rate Update

Hello again! Here’s your afternoon update on the latest PWLB rates and market movements.

Headline

PWLB Rates Take a Dip—Not Quite a Tsunami!

Notice Details

PWLB Interest Rate Notice Number 006/26, published at 12:30 on 06 January 2026.

Maturity Rates

• 1y: 4.57% (-1bps)
• 2y: 4.65% (-2bps)
• 3y: 4.75% (-1bps)
• 5y: 4.97% (-2bps)
• 10y: 5.55% (-2bps)
• 25y: 6.17% (-2bps)
• 50y: 5.94% (-1bps)

Rates have decreased slightly across the board, with the most notable drop being 2 basis points for the 2-year and 5-year maturities.

Afternoon Context

Since this morning, the economic landscape has seen a few updates. The 10:30am release of the S&P Global Composite PMI Final showed an actual value of 51.4, below the forecast of 52.1, indicating a slight slowdown in economic activity. Additionally, the S&P Global Services PMI Final also came in at 51.4, matching the previous figure but again falling short of expectations. In the news, Jaguar Land Rover continues to face challenges with sales plummeting due to a cyber attack and US tariffs, while Next reported strong Christmas sales but cautioned about a potential slowdown ahead. These developments may contribute to a cautious outlook for gilt yields.

Calendar Events

RELEASES SO FAR TODAY:

• GBP S&P Global Composite PMI Final - Actual: 51.4 (Forecast: 52.1, Previous: 51.2)
• GBP S&P Global Services PMI Final - Actual: 51.4 (Forecast: 52.1, Previous: 51.3)

REMAINING TODAY:

• No further significant economic releases today.

TOMORROW:

• Wednesday 07th: GBP S&P Global Construction PMI - 09:30 - Forecast: 40.1 (Previous: 39.4)
• Wednesday 07th: GBP Treasury Gilt 2031 Auction - 10:00 - Previous: 3.8%

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 rates be low and your spreadsheets be error-free!