Morning Rate Update

Headline

PWLB Rates Take a Gentle Dip: A Calm Day in the Treasury Waters

Notice Details

PWLB Interest Rate Notice Number 065/26, released on February 17, 2026, at 09:12 AM.

Maturity Rates

• 1y: 4.46% (-2bps)
• 3y: 4.61% (-2bps)
• 5y: 4.83% (-3bps)
• 10y: 5.44% (-3bps)
• 25y: 6.10% (-4bps)
• 50y: 5.91% (-4bps)

Overall, a gentle decline across the board, with the most notable drop of 4bps seen in the 25-year and 50-year maturities—hardly a rollercoaster ride!

Market Context

The current yield curve reflects a slight flattening trend, with shorter maturities seeing smaller declines compared to longer ones. Today’s economic data revealed a UK unemployment rate of 5.2%, exceeding forecasts of 5.1%, which may influence the Bank of England's future policy decisions. Additionally, wage growth has cooled, further complicating the economic landscape. In the news, the UK government has halted a £110m post-Brexit trade project, which could have implications for economic stability and investor confidence. These developments contribute to a cautious sentiment in the gilt markets, as traders digest the implications of rising unemployment and potential monetary policy shifts.

Calendar Events

TODAY’S RELEASES:

• GBP Unemployment Rate - Actual: 5.2% (Forecast: 5.1%, Previous: 5.1%) - A higher unemployment rate may signal a need for monetary easing.

REMAINING TODAY:

• No significant economic releases scheduled.

THIS WEEK AHEAD:

• Tomorrow, February 18: GBP Inflation Rate YoY - 07:00 - Forecast: 3.0%
• Tomorrow, February 18: GBP PPI Output YoY - 07:00 - Forecast: 0.03

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 smooth and your rates even smoother!