British government bonds, stocks and sterling fall
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UK government borrowing costs jump amid political uncertainty and oil price rise that fuelled inflation worries
The pound tumbled and the cost of Government debts soared on Friday, with economists predicting the pressure will continue throughout a likely Labour leadership contest.
The markets are apparently less enthusiastic about Andy Burnham running than Labour MPs.
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The yield on 30-year UK government bonds surged back up close to 28-year highs and the pound was down as much as 0.4 per cent against the US dollar amid political turmoil.
Bond vigilantes also sold gilts en masse, with UK government bond yields rising due to Andy Burnham's announcement.
Traders fear a new left-leaning U.K. government led by Andy Burnham would challenge the country's fiscal discipline.
UK prime minister Keir Starmer’s biggest leadership rival edges closer to race that could open path to Downing Street
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Andy Burnham wasted no time in going on manoeuvres, pressing the flesh in Makerfield, where arguably the most important by-election in living memory will take place, probably on…