Report: Despite positive response from UK government bonds, political uncertainty in the UK remains

However, Kallum Pickering from Peel Hunt stated in a report that caution should be exercised regarding this initial reaction, as the political situation in the UK remains unstable. Pickering said the decline in UK government bond yields could be due to Keir Starmer's intention to continue as Prime Minister and the absence of challengers at present. However, he noted, "It is still too early to draw any firm conclusions, and the situation remains fluid." Data from Tradeweb shows that the yield on 10-year UK government bonds fell by 3.5 basis points to 4.885%, having earlier reached a two-week low of 4.864%.