Afternoon Rate Update

PWLB fixed rates at the 12:30 PM reset on 8 May 2026 fell by 2–5bp across the curve, with the largest moves at the long end.

PWLB PM SNAPSHOT

• → 1y: 5.18% — (-2bp)
• → 3y: 5.31% — (-3bp)
• → 5y: 5.45% — (-3bp)
• → 10y: 5.91% — (-4bp)
• → 25y: 6.51% — (-4bp)
• → 50y: 6.30% — (-5bp)

WHAT'S NEW SINCE THIS MORNING

• → Curve shift lower — All key tenors reset lower, with the largest falls (-5bp) at 15y, 30y, 40y, and 50y.
• → Long end leads — 30y, 40y, and 50y maturities saw the sharpest moves, each down 5bp.
• → Front end steadier — 1y and 2y rates fell by 2bp, a smaller move than the long end.

CONTEXT

• → UK borrowing costs edged lower — News reports confirm gilt yields fell this morning as markets responded to political reassurances from the Prime Minister and easing risk sentiment.
• → Halifax house price data — April saw a 0.1% MoM fall and YoY growth slowed to 0.4%, both below previous readings, reflecting softer UK property sentiment.
• → BBA Mortgage Rate — Held steady at 6.60%, in line with previous, offering no fresh direction for rates.
• → No single clear driver — Moves reflect a combination of softer UK data and improved risk sentiment, with no single dominant catalyst.

LOOK AHEAD

• → 13:30 USD Non Farm Payrolls — Forecast: 62K; a key global risk event for rates this afternoon.
• → 13:30 USD Unemployment Rate — Forecast: 4.30%; may influence global bond sentiment.
• → Monday 15:00 USD Existing Home Sales — Forecast: 4.05M; first major data point after the weekend.

A clear downward reset for PWLB rates at the PM fix, with long-dated borrowing costs seeing the sharpest falls as gilts rallied.

This commentary is provided for information only and is not financial advice. Please verify rates directly with PWLB or official sources before acting.

Gilt Edge Advisor — If only every Friday brought a 5bp drop at the long end.