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Gilts and pound suffer sell-off as market frets over Labour leadership
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Gilts and pound suffer sell-off as market frets over Labour leadership

The Independent·Holly Williams·18 days ago
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#yields#bonds#long#government#costs#article
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Britain’s long-term government borrowing costs were under pressure once more as another wave of worry over political instability rocked bond markets and kept the pound on the back foot. The yield on 30-year UK government bonds, also known as gilts, surged 12 basis points to 5.774% in Friday morning trading, climbing back up close to 28-year highs reached earlier this week as Prime Minister Sir Keir Starmer comes under mounting threat of a leadership challenge. With potential rivals positioning themselves ready to trigger a formal challenge for the Labour Party leadership, 10-year gilts were also suffering another sell-off, with yields firmly above 5%, up 11 basis points at 5.104%. Gilt yields move counter to the value of the bonds, which means their prices fall when yields rise. Rising yields on these bonds mean it costs more for governments to borrow from financial markets.…

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