UK 10-Year Yield Tops 5.14% as Burnham Bid Drags Pound Down 1.5% This Week
Updated
Updated · BBC.com · May 15
UK 10-Year Yield Tops 5.14% as Burnham Bid Drags Pound Down 1.5% This Week
14 articles · Updated · BBC.com · May 15
5.14% on the 10-year gilt and 5.82% on the 30-year marked fresh multi-year highs Friday, while sterling slipped 0.3% to about $1.337 after Andy Burnham confirmed plans to seek a parliamentary seat.
Investors tied the sharper UK selloff to fears a Burnham-led Labour government would borrow more, citing his past call to get beyond being "in hock to the bond markets" and the prospect of a longer, noisier leadership fight.
$109 Brent crude also added pressure by stoking wider inflation worries that pushed European borrowing costs higher, though analysts said UK moves were larger because of domestic political risk.
Burnham still faces hurdles before any leadership run: Makerfield's local party must pick him, and he would then need to win a by-election that could be close against Reform UK.
As Labour's civil war spooks investors, is Britain hurtling toward another financial crisis?
With Britain's economy on the line, can a 'soft-left' mayor unseat a sitting Prime Minister?