Overview
- Downing Street briefed that a leadership challenge would damage market confidence, with officials accusing Wes Streeting of rallying support as he publicly denied mounting a bid.
- Market reaction was mixed through Wednesday, with City A.M. reporting little change early on and other outlets noting ten‑year gilt yields near 4.43% and thirty‑year around 5.22%.
- The Guardian reported a small rise in the 10‑year yield and a shift toward political risk pricing, noting UK moves diverged from falling US Treasury yields.
- Yields had fallen on Tuesday after higher unemployment boosted expectations of a Bank of England rate cut, underscoring the pull between macro signals and political noise.
- Analysts warn party instability could push borrowing costs higher just as the Treasury chases £30–35bn in fiscal tightening, with the OBR flagging debt interest above £110bn and small yield moves costing or saving billions.