UK Gilts Hit 5.040% as Leadership Contest Threatens Stability

Bond markets in the U.K. are on alert as Prime Minister Keir Starmer could face leadership challenges. Health Secretary Wes Streeting is expected to resign today, potentially triggering a leadership contest. As of Thursday morning, the yield on the benchmark 10-year gilt was 5.040%, down 3 basis points, while the 30-year gilt yield was around 5.759%. Investors are anxious about possible increased borrowing and public spending under a new left-leaning leadership, which could impact market stability. Starmer has vowed to fight for his position, ensuring ongoing political uncertainty.