Amid inflation concerns and political uncertainty in the UK, UK government bond yields have risen further.

Given the high energy prices, concerns about high inflation have caused UK government bond yields to further rise. In addition, as competitors to UK Prime Minister Keir Starmer emerge, political turmoil in the UK has prompted investors to demand a risk premium on government bonds. Investors are worried about the UK's fiscal outlook, as there is a risk that any successor to Starmer may lean towards increasing public sector spending, potentially leading to higher debt. Tradeweb data shows that the yield on 10-year UK government bonds has risen by 2 basis points to 5.186%, the highest level since 2008.