British government debt cheaper as PM struggles for office after failed election

The cost of British government debt came under pressure amid the political crisis. In the morning of Ma 11, the yield of 30-year government bonds rose by 5 basis points to 5.63%, showing dynamics worse than other European debt markets, writes the Financial Times. Bond yields are rising as a result of falling prices.

The ruling UK Labor Party suffered a crushing defeat in the May 7 municipal elections, losing to Nigel Farage's populist Reform UK party. Traders on the Polymarket forecasting platform now estimate the probability of Prime Minister Keir Starmer's resignation by December 31 at 65%, Bloomberg writes.

In an attempt to save his post, Starmer is delivering a speech on Monday containing a plan to fix the ruling party, the agency noted. In the speech, a preview of which was released by the prime minister's office, Starmer will pledge to "face up to the big challenges." Among other things, his speech will include a pledge to bring Britain back closer to the European Union 10 years after Brexit, Bloomberg writes.

This article was AI-translated and verified by a human editor