UK 30-Year Gilt Yield Hits 5.86% as Burnham Move Deepens Political Risk

4 articles · Updated · Bloomberg · May 16

30-year gilt yields jumped as much as 20 basis points to 5.86%—their highest since 1998—after UK bonds sold off sharply.
Andy Burnham triggered the move by setting out plans to run for Parliament, a step that could let the Manchester mayor challenge Keir Starmer and unsettle the government.
Investors fear a leadership fight could bring greater political instability and a more expansionary fiscal stance, pressuring the long end of the gilt market most.
The pound was also headed for its worst week against the dollar since 2024, with high energy costs and inflation worries adding to the market stress.

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