Dutch International: The political risk premium of UK government bonds may continue to exist.

Benjamin Schroeder and Michiel Tukker of the Dutch International Group stated in a report that investors may continue to demand a risk premium on UK government bonds due to the ongoing unstable political environment. Prime Minister Keir Starmer resisted calls for his resignation on Monday, providing temporary relief to investors who were concerned about potential leadership changes in the UK. These strategists noted that despite a slight decrease in UK government bond yields following Starmer's reassurance, the market may still require higher yields on UK government bonds compared to similar bonds in other developed markets. Data from Tradeweb shows that the yield on UK government bonds with a ten-year maturity decreased by 2.7 basis points to 4.503%.