Morning Rate Update

Headline

PWLB Rates Hold Steady with Minor Adjustments

Notice Details

PWLB Interest Rate Notice Number 029/26
Reset: AM
Date: 22 January 2026, 09:01

Maturity Rates

• 1y: 4.56% (+1)
• 3y: 4.71% (0)
• 5y: 4.93% (-1)
• 10y: 5.48% (-3)
• 25y: 6.10% (-4)
• 50y: 5.88% (-5)

Notably, the 50-year rate saw a decrease of 5 basis points, which is quite significant for long-term borrowing.

Market Context

The current yield curve reflects a slight flattening, with shorter maturities seeing minor increases while longer maturities have decreased. Today, the UK public sector net borrowing came in at £11.6 billion, which is better than the forecast of £15 billion, indicating stronger receipts compared to last year. This positive news may provide some support for gilt prices, as it suggests improved fiscal health. Additionally, the ongoing discussions around global economic stability, particularly in relation to US-Europe relations, continue to influence market sentiment. The recent easing of geopolitical tensions, particularly regarding tariffs, could also be contributing to the current rate movements.

Calendar Events

TODAY’S RELEASES:

• GBP Public Sector Net Borrowing Ex Banks - Actual: -£11.58B (Forecast: -£15B, Previous: -£10.94B) - This is significant as it reflects better-than-expected fiscal performance.

REMAINING TODAY:

• 11:00: GBP CBI Distributive Trades - Forecast: -57 (Previous: -44)

THIS WEEK AHEAD:

• Tomorrow: GBP Gfk Consumer Confidence - 00:01 - Forecast: -17
• Tomorrow: GBP Retail Sales YoY - 07:00 - Forecast: 0.01
• Tomorrow: GBP Core Retail Sales - 07:00 - Forecast: 0.01
• Tomorrow: GBP Retail Sales MoM - 07:00 - Forecast: -0.00
• Tomorrow: GBP Core Retail Sales - 07:00 - Forecast: -0.00
• Tomorrow: GBP S&P Global Composite PMI Flash - 09:30 - Forecast: 51.7
• Tomorrow: GBP S&P Global Services PMI Flash - 09:30 - Forecast: 51.5
• Tomorrow: GBP S&P Global Manufacturing PMI Flash - 09:30 - Forecast: 50.8
• Tomorrow: GBP BoE Greene Speech - 09:30
• Tuesday: GBP BRC Shop Price Inflation - 00:01 - Forecast: 0.8%

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, keep your treasury operations as smooth as a well-oiled machine!