Gilts Slump With UK’s Starmer Under Pressure to Stand Down

UK government bonds slid to send long-term yields to the highest in nearly three decades, as a growing number of Labour party politicians called on their leader Keir Starmer to step down following large losses in local elections last week.

The yield on 30-year gilts rose as much as 11 basis points to 5.79% on Tuesday, the most since 1998, as investors fret that a potential change in leadership could result in increased spending to win back voters. That also hit the pound, down 0.3% against the euro to the lowest since late April.