Political Uncertainty May Heighten UK Gilt Pressure as Sunak Successor Approaches, Yields Rise Above Eurozone Peers

According to Barclays analysts, on July 13, UK government bond yields face further upside risk amid political uncertainty following Keir Starmer's departure in June. Andy Burnham is widely expected to succeed Starmer as Prime Minister on July 20, pending no internal Labour Party challenges. Barclays noted that the UK's weakened public finances could pose challenges for the incoming leader. UK gilt yields have risen more sharply than their eurozone counterparts amid broader global bond selloff pressures.
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