UK gilt yields fall and sterling rises after Labour election losses
Updated
Updated · The Wall Street Journal · May 8
UK gilt yields fall and sterling rises after Labour election losses
14 articles · Updated · The Wall Street Journal · May 8
After Keir Starmer said he would stay on, 10-year gilt yields fell four basis points to 4.882%, 30-year yields to 5.552%, and sterling rose 0.5% to $1.3616.
Early results showed Labour lost control of eight councils as Reform UK advanced, but investors saw little immediate threat to fiscal credibility or a leadership change.
Analysts said markets remain vulnerable if pressure on Starmer grows or Labour shifts toward looser spending, which could drive gilt yields higher and weaken the pound.
With markets on edge, can a new Labour leader appease voters without triggering a UK bond crisis?
Starmer vows to stay, but with his party in revolt, who really holds power in the UK government?
As Labour and Tories bleed support, is the UK's traditional two-party system collapsing for good?