Gilts tumbled after Manchester Mayor Andy Burnham secured a pathway to potentially challenge Keir Starmer for the UK prime minister’s job, threatening a fresh bout of political instability that investors fear could result in more expansive fiscal policy.
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Send a tip to our reporters Site feedback: Take our Survey New Window Facebook X LinkedIn Email Link Gift By James Hirai and Greg Ritchie May 15, 2026 at 7:18 AM UTC Updated on May 15, 2026 at 8:33 AM UTC Bookmark Save Gilts tumbled after Manchester Mayor Andy Burnham secured a pathway to potentially challenge Keir Starmer for the UK prime minister’s job, threatening a fresh bout of political instability that investors fear could result in more expansive fiscal policy.
The yield on 10-year gilts jumped as much as 13 basis points to 5.12%, set for the biggest weekly increase since March, with global concerns about high energy costs and inflation also driving the move. Burnham’s announcement that he intends to run for Parliament — a prerequisite to challenge Starmer — helped put the pound on track for its worst week since 2024 against the dollar.
