Latest UK-focused news and updates.
In the wake of recent political turbulence, UK bond yields have begun to decline as Prime Minister Keir Starmer appears to have successfully navigated a leadership challenge. Following a day marked by uncertainty, the bond market is stabilizing, with the 10-year gilt yield down by 4 basis points.
Despite a slight increase in yields yesterday, the cost of two-year fixed-rate mortgages has decreased marginally, now averaging 5.74%, down from 5.75%. The five-year fixed-rate mortgage remains unchanged at 5.67%. This dip in mortgage rates comes as the UK stock market shows signs of recovery, with the FTSE 100 index rising by 0.65%.
Today marks the King's Speech in Parliament, which will outline the government's legislative agenda. Reports suggest that King Charles had to confirm the schedule with Number 10 amid the recent political upheaval. While Starmer's position remains precarious, the absence of a clear challenger has provided some temporary relief, allowing UK assets such as the pound and stocks to stabilize.
As the political landscape evolves, market observers will be closely monitoring developments in both the bond market and the broader economic implications for UK households and businesses.
Source: www.theguardian.com – https://www.theguardian.com/business/live/2026/may/13/uk-bond-market-yields-political-turmoil-oil-inflation-housing-market-live-updates