UK’s 10-year gilt yields are at around 4.85 percent, not far off their highest since the 2008 financial crisis, implying Britain must pay more for its medium-term borrowing needs than any other developed nation. “The question is, is it going to be a coronation or a contest? If it’s a coronation, then I think we can see a little bit of a rally in gilts and/or sterling holding on,” CIBC head of G10 currency strategy Jeremy Stretch told Reuters about Starmer’s potential successor. He also said, “but if there’s a contest, then the danger would be that could involve various protagonists involving themselves, or being dragged into fiscal commitments that they would not otherwise have made, or not be comfortable with. So that would be much more problematic from a sterling perspective.”
