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.

洞察:
In an event-driven market reaction, United Kingdom GBGB 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 USUS. 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 GBGB government (Labour Party) and led to an immediate increase in UK GBGB borrowing costs.
Britain's Prime Minister Keir Starmer answers the Prime Minister's Questions at the House of Commons in London, Britain on February 4, 2026. © House of Commons/Handout via REUTERS
Britain's Prime Minister Keir Starmer answers the Prime Minister's Questions at the House of Commons in London, Britain on February 4, 2026. © House of Commons/Handout via REUTERS
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