As UK Prime Minister Keir Starmer slowly loses allies in government and fights for his survival, the escalating political drama is heaping fresh pressure onto a bond market already battered by the country’s deep-rooted fiscal and economic problems.
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Send a tip to our reporters Site feedback: Take our Survey New Window Facebook X LinkedIn Email Link Gift By Alice Gledhill May 12, 2026 at 5:00 PM UTC Updated on May 12, 2026 at 8:39 PM UTC Bookmark Save As UK Prime Minister Keir Starmer slowly loses allies in government and fights for his survival, the escalating political drama is heaping fresh pressure onto a bond market already battered by the country’s deep-rooted fiscal and economic problems.
Yields on longer-dated gilts are at their highest in decades and above bonds of all Group-of-10 peers. The latest lurch higher came as Starmer faced increasing calls for his resignation after his party was trounced in local elections last week.
