Morning Rate Update

Headline

PWLB Rates Take a Gentle Dip: A Calm Start to the Year

Notice Date: 07 January 2026
Reset Time: 09:15 AM

Maturity Rates

• 1y: 4.55% (-2bps)
• 3y: 4.71% (-4bps)
• 5y: 4.92% (-5bps)
• 10y: 5.49% (-6bps)
• 25y: 6.11% (-6bps)
• 50y: 5.87% (-7bps)

Notably, the 50-year rate saw a larger drop of 7bps, indicating a slight shift in long-term borrowing sentiment.

Market Context

The yield curve remains relatively stable, with minor reductions across all maturities. Today's economic landscape is marked by the release of the GBP S&P Global Construction PMI, which is expected to provide insights into the construction sector's health. Additionally, the market is reacting to geopolitical developments, particularly surrounding oil supply dynamics as President Trump announces Venezuela's commitment to supply oil to the US, potentially impacting global oil prices and, by extension, inflation expectations. This backdrop of geopolitical tension and economic data could influence future PWLB rates, although today's movements remain modest.

Calendar Events

TODAY’S RELEASES:

• GBP S&P Global Construction PMI - Actual: [data not provided], Forecast: [data not provided], Previous: [data not provided]

REMAINING TODAY:

• 10:00: GBP Treasury Gilt 2031 Auction - Low impact

THIS WEEK AHEAD:

• Tomorrow 07:00: GBP Halifax House Price Index MoM - Forecast: 0.1%
• Tomorrow 07:00: GBP Halifax House Price Index - Forecast: 1.0%
• Tomorrow 09:30: GBP DMP 1Y CPI Expectations - Previous: 3.4%
• Tomorrow 10:00: GBP BBA Mortgage Rate - Forecast: 6.6%
• Tuesday 10:00: GBP Index-linked Treasury Gilt 2035 Auction
• Wednesday 10:00: GBP Treasury Gilt 2035 Auction

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 smooth and your rates low!