#Gilts

Gilts tumbled after Manchester Mayor Andy Burnham secured a pathway to potentially challenge Keir Starmer for the UK prime minister’s job, threatening a fresh bout of political instability that investors fear could result in more expansive fiscal policy.

The yield on 30-year gilts jumped as much as 13 basis points to just over 5.8%, reaching the highest level since 1998.

UK gilt yields are rising as domestic political uncertainty surrounding Prime Minister Keir Starmer's leadership compound international inflation worries over the impasse between Iran and the US.