Afternoon Rate Update

Good afternoon! Here’s your Local Authority Treasury update with the latest on PWLB rates.

Headline

PWLB Rates: A Slight Shift in the Wind

Notice Details

The latest PWLB Interest Rate Notice is number 034/26, issued at 12:30 PM today.

Maturity Rates

• 1y: 4.61% (1bp increase)
• 3y: 4.78% (no change)
• 5y: 5.00% (no change)
• 10y: 5.55% (no change)
• 25y: 6.16% (1bp decrease)
• 50y: 5.94% (1bp decrease)

The 1-year rate has seen a slight increase, while the 25-year and 50-year rates have decreased, indicating a modest adjustment in the borrowing landscape.

Afternoon Context

Since this morning, there have been no significant economic data releases to report. In the news, gold prices have surged past $5,000 an ounce, reflecting ongoing investor interest in safe-haven assets amid geopolitical tensions. This trend may influence gilt yields as market participants reassess risk. Overall, the market remains relatively stable, with no major movements observed in response to the latest developments.

Calendar Events

Remaining Today:

• No further significant economic releases today.

This Week Ahead:

• Tomorrow, January 27: GBP BRC Shop Price Inflation - Forecast: 0.8%
• Tomorrow, January 27: GBP Treasury Gilt 2033 Auction
• Thursday, January 29: GBP Car Production YoY - Forecast: 0.07
• Friday, January 30: GBP Nationwide Housing Prices MoM - Forecast: 0.6%
• Friday, January 30: GBP Nationwide Housing Prices YoY - Forecast: 1.5%
• Friday, January 30: GBP Mortgage Lending - Forecast: 4.60B
• Friday, January 30: GBP Net Lending to Individuals MoM - Forecast: 4.20B
• Friday, January 30: GBP Mortgage Approvals - Forecast: 64.40k
• Friday, January 30: GBP BoE Consumer Credit - Forecast: 1.90B
• Friday, January 30: GBP M4 Money Supply 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 smooth as a well-tuned engine!