UK gilt yields jump as borrowing rises and PM Starmer faces leadership challenge
Andy Burnham won the Makerfield by-election, defeating Reform UK by more than 9,000 votes with nearly 55% of the vote.
TL;DR
- Andy Burnham won the Makerfield special election with nearly 55% of the vote.
- Burnham's victory opens the possibility of a leadership challenge to Prime Minister Keir Starmer.
- U.K. public borrowing saw an unexpected rise in May, reaching its highest level for that month in six years.
- Markets are concerned about fiscal discipline under Burnham and potential inflationary pressures.
- Government bond yields, particularly for 10-year Gilts, increased following the borrowing data.
- There is market uncertainty regarding the finance minister in a potential Burnham government and its economic policy.