Institution: UK Treasury worried that it could push up long-term UK government bond yields

Peter Goves of MFS IM stated in a report that due to concerns about the sustainability of the UK public finances, long-term government bond yields in the UK may continue to rise. With Andy Burnham winning a parliamentary seat, clearing the way for him to challenge Prime Minister Keir Starmer, the UK faces the possibility of a high-stakes leadership battle. Goves said that investors will be focused on the outlook for UK fiscal policy, which could increase the risk premium on long-term government bonds. Tradeweb data shows that the yield on UK 30-year government bonds climbed 9.6 basis points to a latest of 5.540%.