Long-Dated U.K. Government Bond Yields Jump to Multiyear High as Pressure Mounts on PM Starmer

Yields on 30-year U.K. government bonds reached their highest level since 1998, driven by concerns over Prime Minister Keir Starmer's leadership amid Labour's local election losses. Investors fear a potential leftward shift in Labour leadership could lead to increased government spending, further impacting public finances and pushing gilt yields higher. Sterling also fell against the euro and dollar. Analysts warn that political uncertainty surrounding Starmer's future could negatively affect the pound and gilts, with a leadership change posing risks of left-wing policies and higher public spending.