economy
'Starmer drama': UK borrowing costs hit post-2008 peak as leadership fears hit bond markets
More than 70 Labour MPs have called on Keir Starmer to resign.
TL;DR
- U.K. government bond yields have reached multi-decade highs, with the 10-year gilt trading around 5.101%.
- More than 70 Labour lawmakers are reportedly calling for Prime Minister Keir Starmer's resignation after significant losses in local elections.
- Starmer has stated he will not resign, and a formal leadership challenge has not yet been triggered.
- Bond markets are showing signs of pricing in political risk, with concerns about potential policy shifts and increased government borrowing.
- Potential successors to Starmer include Wes Streeting, Angela Rayner, and Andy Burnham, with Rayner and Burnham seen as more left-leaning.
- Analysts warn that a leadership challenge could lead to higher gilt yields and a weaker GBP.