Long-Dated U.K. Borrowing Costs Jump to Multiyear High as Pressure Mounts on PM Starmer — Update

Yields on 30-year U.K. government bonds reached their highest level since 1998, while 10-year borrowing costs also surged, amid increasing pressure on Prime Minister Keir Starmer to resign following significant local election losses. Starmer faces calls from 75 Labour lawmakers to step down, with concerns that a left-leaning successor could lead to higher government spending and worsen public finances. This political uncertainty is negatively impacting the pound and gilt yields, as investors demand a higher risk premium on U.K. assets.