UK Gilt Yields Set For Biggest Weekly Jump in Two Months

2026-05-15 07:31 By Joana Ferreira 1 min. read

UK 10-year gilt yields climbed toward 5.2%, their highest since July 2008, and are on track for a nearly 25-basis-point weekly rise, the largest since the second week after the Middle East conflict began.

The surge follows growing political uncertainty after Andy Burnham emerged as a potential challenger to Prime Minister Keir Starmer.

Burnham, viewed as the least favorable option for bond investors, secured a path to challenge Starmer after MP Josh Simons stepped aside.

Other contenders include Wes Streeting, Ed Miliband, and Angela Rayner, with Rayner sharing a similar risk profile to Burnham.

Meanwhile, US President Donald Trump’s remark that “we don’t need the Strait of Hormuz open” pushed crude prices higher.

Traders now expect the Bank of England to deliver about 70 basis points of hikes this year.

Huw Pill, the BOE’s chief economist, who voted for a rate increase at the last meeting, argued for further hikes to counter inflationary pressures from the war-related energy shock.



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