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Gilt Yields Spike Amid Fears of Lurch to the Left Under Burnham
- The cost of UK Government borrowing rose slightly, with the 10-year gilt yield increasing by 0.05 percentage points to 4.81% following Andy Burnham's win in the Makerfield by-election and increased state borrowing in May.
- Andy Burnham won the Makerfield by-election, increasing Labour's vote share by 9.61% and defeating Reform UK's Robert Kenyon by 9,231 votes, raising the possibility of a leadership challenge to Prime Minister Sir Keir Starmer.
- Market reactions included the pound initially falling 0.5% after Burnham's election but recovering within two hours, while the FTSE 100 opened slightly lower by 0.02%, influenced by global factors such as US dollar strength after a Federal Reserve meeting.
- Traders had anticipated Burnham's win, and it is difficult to separate sterling's weakness caused by the possible prime minister change from US dollar strength following a hawkish Federal Reserve meeting.
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Phil Wickenden: Labour's next test is the gilt market
Until now, the question was: would Labour be better off replacing Sir Keir Starmer as prime minister with Andy Burnham? That question now has a time stamp. Starmer will stand down once Labour chooses its next leader. The assumption is that this opens the way… The post Phil Wickenden: Labour’s next test is the gilt market appeared first on Money Marketing.
Coverage Details
Total News Sources13
Leaning Left4Leaning Right2Center2Last UpdatedBias Distribution50% Left
Bias Distribution
- 50% of the sources lean Left
50% Left
L 50%
C 25%
R 25%
Factuality
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