Overview
- UK 30-year government bond yields, which jumped Tuesday to about 5.81%, reached their highest since 1998 and raised the cost of state borrowing.
- Sterling fell about 0.6% to $1.352 and slipped against the euro as the FTSE 100 dropped more than 1% at the open on higher oil prices.
- Pressure on Prime Minister Keir Starmer intensified after ministers urged a resignation timetable and more than 70 Labour MPs called for him to go.
- Party factions moved to shape the succession, with Wes Streeting positioned for a quick centrist bid while the Left backs Andy Burnham and pushes for a slower contest.
- Analysts warned that a shift toward more spending could embed inflation and trigger a deeper sell-off in longer-dated gilts.