Afternoon Rate Update

Headline

PWLB Rates: A Quiet Afternoon with a Hint of Change

Notice Time: 12:30 PM

Maturity Rates

• 1y: 4.49% (0bps)
• 3y: 4.63% (0bps)
• 5y: 4.85% (-1bp)
• 10y: 5.45% (-1bp)
• 25y: 6.10% (-1bp)
• 50y: 5.91% (-1bp)

Rates have remained relatively stable this afternoon, with only minor declines in the 5-year, 10-year, 25-year, and 50-year maturities. The 1-year and 3-year rates held steady, indicating a lack of significant market movement.

Afternoon Context

This morning's CPI data confirmed inflation at 3.0%, aligning with forecasts and down from 3.4%. The 10:30 AM release of the GBP Inflation Rate YoY showed a notable decrease, which has bolstered expectations for a potential interest rate cut by the Bank of England in March. Meanwhile, news surrounding the UK’s economic outlook continues to evolve, with discussions on youth unemployment and government spending making headlines. Overall, the market appears to be absorbing these developments without significant shifts in gilt yields.

Calendar Events

REMAINING TODAY:

• None scheduled for the remainder of today.

THIS WEEK AHEAD:

• Tomorrow: CBI Industrial Trends Orders - Forecast: -25
• Friday: Retail Sales MoM - Forecast: 0.00
• Friday: Retail Sales YoY - Forecast: 0.03
• Friday: S&P Global Services PMI Flash - Forecast: 53.6
• Friday: S&P Global Manufacturing PMI Flash - Forecast: 51.9

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 steady as a well-tuned clock!