Morning Rate Update

Headline

PWLB Rates: A Gentle Nudge Upwards

Notice Date: 18 February 2026
Reset Time: 09:17 AM

Maturity Rates

• 1y: 4.49% (2bps)
• 3y: 4.63% (1bp)
• 5y: 4.86% (2bps)
• 10y: 5.46% (2bps)
• 25y: 6.11% (1bp)
• 50y: 5.92% (1bp)

Rates have seen a modest increase, particularly in the 1-year and 5-year tenors, with a 2 basis point rise. However, the rest of the curve remains relatively stable, with little movement across the longer maturities.

Market Context

The current yield curve reflects a slight upward shift, particularly in the shorter maturities, indicating a cautious market sentiment. Today’s inflation data showed a significant drop to 3.0%, matching forecasts and down from 3.4% previously. This decline in inflation could bolster expectations for potential interest rate cuts by the Bank of England in the near future. Additionally, the news highlights a cooling in UK inflation, which may influence gilt yields and PWLB rates moving forward. Overall, the market appears to be digesting these developments, with a focus on how they might impact future borrowing costs.

Calendar Events

TODAY’S RELEASES:

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