Analysis: Political uncertainty in the UK may put pressure on government bonds.

AJ Bell's Russ Mould stated in a report that political uncertainty surrounding the prospect of Keir Starmer becoming Prime Minister could put pressure on UK government bonds known as gilts. Mould said that in recent months, UK government bond yields have been rising, reflecting investors' belief that the UK is a "higher-risk investment." A scandal involving an investigation into and appointment of former UK ambassador to the US, Peter Mandelson, has put pressure on the Prime Minister. Mould said that with increasing political tensions, "investors are now asking what policies will be like with a new Prime Minister and what impact this will have on economic prospects." Tradeweb data shows that the latest 10-year UK government bond yield is 4.837%, having earlier risen 3 basis points to 4.875%.