UK government borrowing costs surge to highest since 2008 as PM Starmer pressured to quit
Thirty-year gilt yields climbed to 5.76% as more than 70 Labour MPs pressed Starmer for clarity on his future.
- On Tuesday, 30-year gilt yields jumped to 5.807%, the highest level since 1998, as markets reacted to mounting pressure on Prime Minister Sir Keir Starmer from more than 70 Labour MPs demanding clarity over his future.
- Senior ministers reportedly urged the Prime Minister to outline a timetable for his departure from Downing Street, intensifying internal Labour revolt as one minister described the atmosphere within Government as "absolutely barking mad."
- Sterling weakened 0.4% to $1.355 on Tuesday morning, while investor strategist Neil Wilson of Saxo UK warned that prolonged uncertainty risks a "blowout in longer-dated gilts" and rising inflation pressures.
- Labour MP Chris Curtis publicly stated, "It's time for us to look for new leadership," signaling deepening party divisions as multiple factions advance competing policy platforms amid investor concerns.
- Bond investors fear a leadership contest could shift policy toward higher public spending, potentially worsening the fragile fiscal position and raising debt servicing costs at a time of elevated gilt yields.
33 Articles
33 Articles
The bond markets will not rescue Keir Starmer
Like a toddler on a long drive, the UK bond markets are hot, grumpy and ready to puke. Gilt yields – the borrowing costs imposed by these markets – have reached feverish, multi-decade highs as ministers resign and MPs call on Keir Starmer to step down. Starmer’s supporters argue that this is precisely why you can’t get rid of him: he and his Chancellor, Rachel Reeves, have the backing of the market. BBC News is reporting that the investors who t…
UK government borrowing costs hit 28-year high on leadership uncertainty
The yield on 30-year gilts jumped as much as 13 basis points to just over 5.8%, reaching the highest level since 1998. UK long-term borrowing costs have surged to a fresh 28-year high and the pound weakened as Prime Minister Sir Keir Starmer’s leadership comes under increasing pressure. The yield on 30-year UK government bonds – also known as gilts – jumped as much as 13 basis points to 5.807% in Tuesday morning trading, reaching the highest lev…
UK 30-Year Yields Jump to Highest Since 1998 on Starmer Pressure
The UK bond market tumbled, driving long-term bond yields back to the highest in nearly three decades, as growing pressure on Prime Minister Keir Starmer to step down renewed concerns about the fragile state of Britain’s finances.
The United Kingdom was borrowing this Tuesday morning at 5.797% to 30 years in the markets, never seen since 1998. The 10-year rate was approaching levels more seen since 2008. Investors are worried about the political situation across the Channel while Prime Minister Keir Starmer is challenged after...
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