Barclays: Political risks may increase pressure on UK government bonds

Golden Ten Data reported on July 13 that Barclays analysts noted in a report that UK government bond yields face further upward risk due to political uncertainty. Following Keir Starmer's resignation in June, the UK is awaiting the selection of a new Prime Minister, leading to ongoing political risk. If there are no other internal Labour Party candidates, the general expectation is that Andy Burnham will succeed Starmer on July 20. Analysts stated that the UK's poor public finances may present challenges for the new Prime Minister. Driven by escalating tensions in the Middle East, global bond yields have generally risen, with UK government bond yields increasing more than comparable Eurozone government bonds.