Afternoon Rate Update

Good afternoon! Here’s your Local Authority Treasury update, focusing on the latest PWLB rates and market movements since this morning.

Headline

PWLB Rates Shift: A Slightly More Expensive Afternoon

Notice Date: 08 January 2026
Reset Time: 12:30 PM

Maturity Rates

• 1y: 4.56% (+2)
• 3y: 4.70% (+1)
• 5y: 4.91% (+1)
• 10y: 5.48% (+1)
• 25y: 6.11% (+1)
• 50y: 5.88% (+1)

Afternoon Context

This afternoon's PWLB rates show a notable increase in the 1-year rate, which rose by 2 basis points. Other maturities saw minor increases of 1 basis point. In economic news, the 10:30 AM release of the BBA Mortgage Rate showed an actual value of 6.8%, matching the previous figure but exceeding the forecast of 6.6%. This indicates a stable mortgage environment, which may influence borrowing decisions. Overall, the market remains cautious, with no significant shifts in gilt yields observed following these updates.

Calendar Events

RELEASES SO FAR TODAY:

• GBP Halifax House Price Index MoM - Actual: -0.6% (Forecast: 0.1%, Previous: -0.1%)
• GBP Halifax House Price Index - Actual: 0.3% (Forecast: 1.0%, Previous: 0.6%)
• GBP BBA Mortgage Rate - Actual: 6.8% (Forecast: 6.6%, Previous: 6.8%)

REMAINING TODAY:

• No further significant economic releases today.

THIS WEEK AHEAD:

• Tuesday 00:01: GBP BRC Retail Sales Monitor YoY - Forecast: 0.01
• Tuesday 10:00: GBP Index-linked Treasury Gilt 2035 Auction
• Wednesday 10:00: GBP Treasury Gilt 2035 Auction
• Thursday 00:01: GBP RICS House Price Balance - Forecast: -0.16
• Thursday 07:00: GBP Balance of Trade - Forecast: -3.50B
• Thursday 07:00: GBP GDP MoM - Forecast: -0.1%
• Thursday 07:00: GBP Industrial Production MoM - Forecast: 0.01

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 treasury operations be as steady as a well-balanced budget!