UK Gilt Yields Steady Ahead of Key By-Election
2026-02-26 09:27
By
Joana Ferreira
1 min. read
The UK 10-year gilt yield held just above 4.3%, near its lowest level in a year, as investors monitored a high-stakes by-election in Gorton and Denton with potential implications for Prime Minister Keir Starmer.
The vote was triggered by the resignation of former Labour minister Andrew Gwynne, and a loss for the ruling Labour Party could reignite leadership speculation, following recent pressure linked to the Peter Mandelson scandal.
Investors fear any political shake-up involving Starmer and Chancellor Rachel Reeves could prompt looser fiscal policies, fueling debt sustainability concerns.
Markets also weighed US President Donald Trump’s new 10% global tariffs and a third round of US-Iran nuclear talks in Geneva, amid heightened Middle East tensions.
Meanwhile, recent strong fiscal data, a dovish tone from the Bank of England, softer employment figures, and subdued inflation helped calm market nerves.