Morning Rate Update

Headline

PWLB Rates: A Gentle Breeze with Minimal Movement

Notice Details

Today's PWLB Interest Rate Notice is number 033/26, with a reset occurring at 09:05 AM on January 26, 2026.

Maturity Rates

• 1y: 4.60% (1bp increase)
• 3y: 4.78% (2bp increase)
• 5y: 5.00% (2bp increase)
• 10y: 5.55% (1bp increase)
• 25y: 6.17% (1bp increase)
• 50y: 5.95% (1bp increase)

Overall, the rates have seen slight increases, with the 3-year and 5-year maturities showing a modest uptick of 2 basis points each, which is noteworthy but not earth-shattering.

Market Context

The current yield curve reflects a gradual upward shift, particularly in the shorter maturities, indicating a slight increase in borrowing costs for Local Authorities. Today's economic landscape is relatively quiet, with no significant GBP releases reported so far. However, the upcoming auction of Treasury Gilts scheduled for tomorrow could influence market sentiment. In the news, gold prices have surged past $5,000 an ounce, driven by investor demand for safe-haven assets amid geopolitical tensions, which may indirectly affect gilt yields as investors reassess risk. Additionally, the dollar is under pressure due to potential currency interventions, which could have ripple effects on UK rates.

Calendar Events

Today's Releases:

• No significant economic releases scheduled.

Remaining Today:

• No significant economic releases scheduled.

This Week Ahead:

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