Afternoon Rate Update

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

Headline: Rates Hold Steady, PWLB Takes a Breather!

PWLB Interest Rate Notice Number 028/26 was released at 12:30 PM.

Maturity Rates:

• 1y: 4.55% (0bps)
• 2y: 4.62% (0bps)
• 3y: 4.71% (0bps)
• 5y: 4.94% (+1bps)
• 7y: 5.18% (+1bps)
• 10y: 5.51% (+2bps)
• 12y: 5.68% (+2bps)
• 15y: 5.88% (+2bps)
• 20y: 6.07% (+2bps)
• 25y: 6.14% (+2bps)
• 30y: 6.16% (+2bps)
• 40y: 6.10% (+2bps)
• 50y: 5.93% (+3bps)

Afternoon Context:

Since this morning, the economic landscape has seen some notable updates. The 10:30 AM release of the GBP CBI Business Optimism Index showed an actual of -19, better than the forecast of -27, indicating a slight improvement in business sentiment. Additionally, the GBP CBI Industrial Trends Orders reported an actual of -30 against a forecast of -28, suggesting ongoing challenges in manufacturing. Meanwhile, geopolitical tensions continue to influence market sentiment, particularly with the ongoing discussions at the World Economic Forum in Davos. Overall, gilt yields remain stable, reflecting a cautious market atmosphere.

Calendar Events:

REMAINING TODAY:

• 14:15 - GBP BoE Woods Speech

TOMORROW:

• Thursday 22nd: GBP Public Sector Net Borrowing Ex Banks - 07:00 - Forecast: -15B
• Thursday 22nd: GBP CBI Distributive Trades - 11:00 - Forecast: -57

THIS WEEK AHEAD:

• Friday 23rd: GBP Gfk Consumer Confidence - Forecast: -17
• Friday 23rd: GBP Retail Sales YoY - Forecast: 0.01
• Friday 23rd: GBP S&P Global Services PMI Flash - Forecast: 51.5

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 smooth as a freshly paved road!