After day of ‘Starmer drama’, UK bond yields are dropping in early trading as prime minister appears to fend off leadership challenge
UK government bond prices are rallying at the start of trading, pulling down borrowing costs.
Investors appear relieved that Sir Keir Starmer is holding onto power this morning, after a challenge from health secretary Wes Streeting failed to materialise.
Streeting was due to hold talks with Starmer on Wednesday, at which he was expected to talk candidly about his concerns, with No 10 insiders suggesting he was climbing down from intense speculation that he was on the brink of running.
The Labour Party is not driven by one individual. It is shaped by its internal dynamics and by its union base, both of which tend to favour a more expansive fiscal stance. Markets understand this. They do not price the best-case scenario, they price the probability weighted outcome. Where fiscal discipline risks giving way to political pressure, yields adjust accordingly.
The reaction to Andy Burnham’s comments was telling. His remark that the UK has to “get beyond this thing of being in hock to the bond markets” reflects a strand of thinking within the party that markets instinctively reject, not the rhetoric itself, but for what it implies about relaxing fiscal constraints.
What stands out is uK government bond prices are rallying at the start of trading, pulling down borrowing costs. That is the part worth paying attention to.
Wes Streeting is in a tough spot here, curious how they navigate it.
The detail about the reaction to Andy Burnham’s comments was telling is something people should sit with.
On one hand the reaction to Andy Burnham’s comments was telling. But at the same time after day of ‘Starmer drama’, UK bond yields are dropping in early trading as prime minister appears to fend off leadership.
Reading that investors appear relieved that Sir Keir Starmer is holding onto power this morning, after a challenge from health secretary Wes Streeting failed to materialise — hard to argue with the logic there.
Reading that uK government bond prices are rallying at the start of trading, pulling down borrowing costs — hard to argue with the logic there.
Think about it: investors appear relieved that Sir Keir Starmer is holding onto power this morning, after a challenge from health secretary Wes Streeting failed to materialise. That speaks volumes.
Reading that the Labour Party is not driven by one individual — hard to argue with the logic there.
After day of ‘Starmer drama’, UK bond yields are dropping in early trading as prime minister appears to fend off leadership. Meanwhile uK government bond prices are rallying at the start of trading, pulling down borrowing costs.
Basically the Labour Party is not driven by one individual. What matters is whether anything changes because of it.
So the bottom line is the Labour Party is not driven by one individual. Wonder how this will land.
The fact that after day of ‘Starmer drama’, UK bond yields are dropping in early trading as prime minister appears to fend off leadership really puts things into perspective.
In other words after day of ‘Starmer drama’, UK bond yields are dropping in early trading as prime minister appears to fend off leadership. Curious to see how this develops.
Think about it: uK government bond prices are rallying at the start of trading, pulling down borrowing costs. That speaks volumes.
Considering after day of ‘Starmer drama’, UK bond yields are dropping in early trading as prime minister appears to fend off leadership, it raises some real questions about what happens next.