UK government borrowing costs surge to highest since 2008 as PM Starmer pressured to quit
- On Tuesday, 30-year gilt yields jumped to 5.807%, the highest level since 1998, as markets reacted to mounting pressure on Prime Minister Sir Keir Starmer amid Labour leadership uncertainty.
- More than 70 Labour MPs publicly demanded clarity over Starmer's future on Monday, while senior ministers reportedly urged the Prime Minister to outline a timetable for departure from Downing Street.
- Sterling weakened 0.4% against the dollar to $1.355 on Tuesday morning, while investor strategist Neil Wilson of Saxo UK warned that prolonged uncertainty could trigger a "blowout in longer-dated gilts."
- Labour MP Chris Curtis declared, "It's time for us to look for new leadership," while one minister described the atmosphere within Government as "absolutely barking mad" amid internal turmoil.
- Bond investors fear a leadership contest could shift policy toward higher public spending, potentially worsening the country's fragile fiscal position and raising near-term debt servicing costs for taxpayers.
21 Articles
21 Articles
UK government borrowing costs hit 28-year high on leadership uncertainty
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 long-term borrowing costs have surged to a fresh 28-year high and the pound weakened as Prime Minister Sir Keir Starmer’s leadership comes under increasing pressure. The yield on 30-year UK government bonds – also known as gilts – jumped as much as 13 basis points to 5.807% in Tuesday morning trading, reaching the highest lev…
UK 30-Year Yields Jump to Highest Since 1998 on Starmer Pressure
The UK bond market tumbled, driving long-term bond yields back to the highest in nearly three decades, as growing pressure on Prime Minister Keir Starmer to step down renewed concerns about the fragile state of Britain’s finances.
The United Kingdom was borrowing this Tuesday morning at 5.797% to 30 years in the markets, never seen since 1998. The 10-year rate was approaching levels more seen since 2008. Investors are worried about the political situation across the Channel while Prime Minister Keir Starmer is challenged after...
Keir Starmer leadership crisis sparks sudden drop in value of pound and borrowing costs surge
UK borrowing costs surged and the pound dropped on Tuesday morning as rumours of a leadership challenge mount, with senior Labour figures calling for Keir Starmer to resign
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