British political earthquake! Starmmer is deeply embroiled in a crisis to step down. 10-year UK bond yields hit a new high since 2008.

According to reports from the media on Tuesday, British Prime Minister Keir Starmer was discussing with colleagues whether to continue as Prime Minister before a crucial cabinet meeting. Prior to this, several ministerial assistants had resigned, and nearly 80 MPs publicly demanded his resignation. Intense pressure within the party, Starmer's position as Prime Minister is in jeopardy Starmer has been Prime Minister for less than two years. In last week's local elections, the ruling Labour Party, led by Starmer, suffered a heavy blow, with a large number of MPs turning against him within the party. Faced with internal upheaval, Starmer vowed on Monday to continue in office. It is reported that the Labour Party only won just over 1,000 out of approximately 5,000 seats in this election in the England region, losing nearly 1,500 seats. In contrast, the far-right UK Reform Party won over 1,400 seats in England, gaining an absolute majority in over 10 local councils, including several traditional strongholds of the Labour or Conservative Party. Following the disastrous election defeat, Labour MPs have been calling for Starmer's resignation one after another. According to reports, several cabinet ministers, including Home Secretary Shabana Mahmood and Foreign Secretary Ivette Cooper, have informed Starmer that he needs to determine his resignation date. Nearly 80 MPs from different factions within the Labour Party collectively called for Starmer to announce a resignation timetable to kick off a leadership election. Senior Minister Darren Jones told the media on Tuesday that Starmer was listening to colleagues' opinions and would ultimately make the decision himself. Jones said, "He is listening to the opinions of colleagues and communicating with them. I cannot predict any decision he may or may not make." To stabilize his position, Starmer made a public speech on Monday, promising to tackle the many problems facing Britain with greater boldness and speed. However, the speech did not quell the dissatisfaction within the party. Almost at the same time, Labour MPs began publicly calling for his resignation or indicating an intention to leave. Political turmoil also affected the financial markets, pushing up the overall borrowing costs in the UK. The yield on the UK's 10-year government bond hit a new high since 2008 Political turmoil dragging down the economy, UK government bond yields surge Political instability could lead to economic hardship in the UK. The UK has already experienced frequent changes in government, having had five prime ministers in seven years. Starmer, elected in July 2024, promised to focus on economic development. However, multiple factors such as government tax policies, aging population, and long-term low productivity have hindered economic growth in the UK. The continued political turmoil has further eroded investors' confidence, casting a shadow over economic recovery. Starmer admitted that the UK has been in a long-standing political crisis since the Brexit referendum ten years ago. The Labour Party ended the turmoil by winning an absolute majority in parliament only two years ago. If there were to be a hasty leadership contest now, it would inevitably trigger public dissatisfaction, and the Labour Party would find it difficult to gain public understanding. The party's palace intrigue comes at a time when King Charles III of Britain is set to hold a grand State Opening of Parliament on Wednesday, announcing the government's legislative agenda. Analysts point out that British voters are increasingly disappointed with the governance and performance of the two traditional parties, Labour and the Conservatives, with many turning to emerging political forces. The fragmentation of British politics is an ongoing trend, reflective of the evolving political landscape in many European countries. At the time of publication, the UK's FTSE 100 index fell by 0.6%. The yield on the UK's 10-year government bond surged by 11 basis points to 5.11%, reaching its highest level since 2008. Meanwhile, the long-end government bond yields in the UK hit a new high since 1998, with the 20-year UK government bond yield rising by 10 basis points, and the 30-year yield soaring by 11 basis points.