UK Bonds Rally as Starmer Says He’ll Stay as Prime Minister

UK government bonds posted a relief rally after Prime Minister Keir Starmer vowed to stay in his job despite deep local election losses, with investors set to focus on any fallout on his leadership in coming weeks.

Yields on 30-year gilts, which are sensitive to political and fiscal risks, fell six basis points to 5.58%. That delivered the best week for the bonds in a month, recovering from a selloff fueled by concerns the vote would put Starmer’s position at risk. The pound also gained against the dollar and euro.