Analysis: Political uncertainty in the UK may keep the pound and UK government bonds under continued pressure

"One concern is that the transfer of power from Starmer to any successor may proceed slowly. Starmer is holding out against calls for his resignation. Furthermore, bookmaker favorites to replace him, such as Greater Manchester Mayor Andy Burnham, may find it difficult to return to parliament. He stated that regardless of what happens, Labour Party policy will experience a period of uncertainty in the future. The British pound fell 0.5% to $1.3537. The euro rose 0.25% to £0.8676. Tradeweb data shows that the U.K. 10-year government bond yield increased by nearly 11 basis points to 5.104%."