U.K. bond yields rose on Thursday as Prime Minister Keir Starmer came under renewed pressure over his handling of a scandal around former U.K. ambassador to the U.S. Peter Mandelson’s links to the disgraced financier Jeffrey Epstein.
The yield, or interest rate, on the U.K.’s benchmark 10-year gilt was up 3 basis points to 4.575% at around 9.44 a.m. London time on Thursday amid reports of mounting anger among Labour Party lawmakers over Starmer’s appointment of Mandelson as ambassador in Feb. 2025.
A trove of documents and emails released by the U.S. Department of Justice in recent weeks and months cast new light on Mandelson’s relationship with sex offender Epstein, and how their friendship continued despite Epstein’s conviction in 2008 for soliciting prostitution from a minor.
Starmer told parliament on Wednesday that he was misled about the “sheer depth and extent” of Mandelson’s relationship with Epstein, despite the links being highlighted during a vetting process before his appointment.
“He lied repeatedly to my team when asked about his relationship with Epstein before and during his tenure as ambassador. I regret appointing him,” Starmer said, adding: “If I knew then what I know now, he would never have been anywhere near government.”
