UK 30-Year Yields Hit 1998 Levels as Political Crisis Deepens

The UK bond market tumbled, driving long-term bond yields back to the highest in nearly three decades, as speculation over Keir Starmer’s future as prime minister renewed concern about the weakened state of Britain’s finances.

Gilts fell across the board, with the 30-year yield briefly touching 5.81%, the highest since 1998. The pound slid 0.6% to $1.3523. NatWest Group Plc and Lloyds Banking Group Plc fell at least 3% as analysts speculated that the industry faces higher taxes under a new administration.