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.

British government bonds, stocks and sterling fall

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 government borrowing costs jump amid political uncertainty and oil price rise that fuelled inflation worries

La posibilidad de que Andy Burnham se convierta en primer ministro es vista como un riesgo por los operadores, que temen que pueda aumentar el gasto público.

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.

Kemi Badenoch has warned that Andy Burnham would saddle the UK with a "Burnham premium" on mortgages and borrowing costs

The U.K.'s would-be prime minister, Andy Burnham, is being closely watched by bond markets.

Bookies’ favourite to replace Keir Starmer tones down stance on government borrowing to assuage City investors

Shadow chancellor Sir Mel Stride said taxpayers face a 'Burnham premium' as markets push up government borrowing costs because of concerns that he will drag Labour further to the…