UK borrowing costs rise as Keir Starmer faces leadership crisis over Mandelson appointment
UK gilt yields rose on Thursday as Keir Starmer faced a leadership crisis. Investors are worried about stability following a controversial diplomatic choice.
Insights:
In an event-driven market reaction, United Kingdom 
GB government bond yields rose sharply today, February 5, 2026, as investors responded to the decision by Prime Minister keir starmer to appoint peter mandelson as the nation's ambassador to the United States 
US. The appointment of peter mandelson, which comes despite his documented ties to jeffrey epstein, has triggered significant investor uncertainty regarding the political stability of the UK GB government (Labour Party) and led to an immediate increase in UK GB borrowing costs.
GB government bond yields rose sharply today, February 5, 2026, as investors responded to the decision by Prime Minister keir starmer to appoint peter mandelson as the nation's ambassador to the United States US. The appointment of peter mandelson, which comes despite his documented ties to jeffrey epstein, has triggered significant investor uncertainty regarding the political stability of the UK GB government (Labour Party) and led to an immediate increase in UK GB borrowing costs.
