Dutch international: Political uncertainty may dominate the British bond market.

James Smith and Chris Turner of the Dutch international group stated in a report that political trends in the UK may become the primary driving factor for UK government bonds. The interest rate statement released by the Bank of England on Thursday indicated an increased possibility of further interest rate cuts, which could boost the performance of UK government bonds. However, they noted that the political tensions within the ruling Labour Party in the UK may dominate the UK sovereign bond market. The yield on the 10-year UK government bonds recently dropped by 1.6 basis points to 4.522%. Earlier on Thursday, the yield had climbed to a two-and-a-half-month high of 4.594% due to market concerns about possible leadership changes after UK Prime Minister Keir Starmer faced pressure over appointing former UK Ambassador to Washington, Peter Mandelson.