British Prime Minister faces increasing pressure to step down as government bond yields rise.

After British Prime Minister's Chief of Staff Morgan McVeigh resigned, the pressure on British Prime Minister Keir Starmer increased, and the price of gilts fell. On Monday, the entire UK government bond yield curve rose by as much as 4 basis points, with the 10-year UK government bond yield rising to 4.55%. According to several British MPs, McVeigh was alleged to have played a key role in the appointment of former Labour heavyweight Peter Mandelson as British Ambassador to the United States, a decision that later sparked controversy within the party. Labour stalwart McVeigh took full responsibility, as he had advised Starmer to appoint Mandelson, despite Mandelson's close relationship with Jeffrey Epstein. Mandelson was appointed as the British Ambassador to the United States in December 2024 and was sacked in September 2025. Sources revealed that officials at 10 Downing Street are preparing to deal with cabinet ministers privately demanding the Prime Minister's resignation, or threatening to resign if he does not step down. At this time, disgruntled members within the government are strongly calling for a change at the top, with Health Secretary Wes Strittin and former Deputy Prime Minister Angela Rayner being seen as front-runners to replace Starmer. Investors have reacted negatively to the prospect of Starmer or Chancellor Rachel Reeves resigning, fearing they may be replaced by colleagues who are not as rigorous in fiscal policy. Even if Starmer can survive the accountability calls surrounding Mandelson, he will still face serious challenges in the coming weeks. The most immediate crisis is the by-election in Gordon and Dendon on February 26. The seat was originally a Labour stronghold, but now the Green Party and Reform Party are vying for first place. Two months later, a series of local elections will also be held, with polls suggesting that Labour is set to lose a significant number of seats.