UK Gilt Yields Ease Amid Political Transition

2026-06-30 09:58 By Joana Ferreira 1 min. read

UK 10-year gilt yields fell to 4.71%, near two-month lows, as bond markets remained calm while investors awaited news on the new Treasury leader to replace Rachel Reeves.

Markets looked past immediate fiscal concerns tied to a likely Andy Burnham premiership, with the new Chancellor’s identity expected to signal the direction of fiscal and economic policies under the incoming government.

Burnham, the sole candidate to succeed Keir Starmer, pledged on Monday to significantly devolve fiscal powers from Westminster to local authorities if elected, while upholding fiscal discipline.

Gilt yields were on track for a 9bps monthly decline as investors assessed the impact of the interim US-Iran peace deal and shifting interest rate expectations in both the UK and US.

The reopening of the Strait of Hormuz has reduced oil prices and inflation concerns, lowering bets on Bank of England rate hikes, while the US Federal Reserve’s hawkish stance continues to support expectations of US rate increases.



News Stream
UK Gilt Yields Ease Amid Political Transition
UK 10-year gilt yields fell to 4.71%, near two-month lows, as bond markets remained calm while investors awaited news on the new Treasury leader to replace Rachel Reeves. Markets looked past immediate fiscal concerns tied to a likely Andy Burnham premiership, with the new Chancellor’s identity expected to signal the direction of fiscal and economic policies under the incoming government. Burnham, the sole candidate to succeed Keir Starmer, pledged on Monday to significantly devolve fiscal powers from Westminster to local authorities if elected, while upholding fiscal discipline. Gilt yields were on track for a 9bps monthly decline as investors assessed the impact of the interim US-Iran peace deal and shifting interest rate expectations in both the UK and US. The reopening of the Strait of Hormuz has reduced oil prices and inflation concerns, lowering bets on Bank of England rate hikes, while the US Federal Reserve’s hawkish stance continues to support expectations of US rate increases.
2026-06-30
UK Gilt Yields Near Lows as Burnham Pledges Fiscal Discipline
UK 10-year gilt yields hovered around 4.73%, staying close to two-month lows, as bond markets absorbed Andy Burnham’s speech. Burnham, the sole candidate to succeed Keir Starmer, vowed to significantly devolve fiscal powers from Westminster to local authorities if elected, while maintaining fiscal discipline. In his first major speech after winning a Commons seat, Burnham criticized the UK’s "stark imbalance" between national and local government resources, calling it a barrier to growth. However, he refused to disclose potential ministerial appointments, stating he would announce them only after the Labour leadership contest concludes. Investors are also evaluating the impact of an interim US-Iran peace deal and shifting interest rate expectations in both the UK and US. The reopening of the Strait of Hormuz has lowered oil prices and inflation forecasts, reducing bets on Bank of England hikes, while the US Federal Reserve's hawkish stance supports US rate increase expectations.
2026-06-29
UK Gilt Yields Slightly Up as Burnham’s Economic Stance Awaited
UK 10-year gilt yields rose toward 4.75%, bouncing back from two-month lows, as investors await Andy Burnham’s speech for insights into his economic strategy. Burnham, the only declared candidate to succeed Keir Starmer, is expected to advocate for expansionary fiscal policies following his return to Westminster. Investors are also evaluating the impact of an interim US-Iran peace deal and shifting interest rate expectations in both the UK and US. The reopening of the Strait of Hormuz has lowered oil prices and inflation forecasts, prompting markets to reduce bets on Bank of England rate hikes. Meanwhile, Fed Chair Kevin Warsh’s hawkish tone has strengthened expectations of US rate increases this year.
2026-06-29