UK borrowing costs rise after departure of two key Keir Starmer aides

The Guardian - World NewsCenter-LeftEN 3 min read 100% complete by Graeme WeardenFebruary 9, 2026 at 03:34 PM

AI Summary

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UK borrowing costs increased on Monday following the resignations of two key aides to Prime Minister Keir Starmer. The yield on UK benchmark bonds rose as investors reacted to the departures and assessed the potential impact of Starmer's possible replacements on the UK's finances. Specifically, the yield on 10-year UK government debt reached a two-and-a-half-month high, and 30-year bond yields also increased. The pound experienced a slight dip against the euro but saw a small increase against the US dollar. Analysts suggest that potential replacements for Starmer, who are perceived as more left-leaning, could lead to increased government spending and a loosening of fiscal policy, potentially impacting gilt yields and the pound.

Key Entities & Roles

Key Player Opposition Context

Zack Polanski 30% AJ Bell 40% Kemi Badenoch 40% Tim Allan 40% Andy Burnham 50% Rachel Reeves 50% Anas Sarwar 50% Peter Mandelson 60% Angela Rayner 60% Morgan McSweeney ×270% Keir Starmer ×480%

Keywords

uk borrowing costs 90% bond yields 80% political instability 70% keir starmer 70% government bonds 60% fiscal policy 60% public finances 50% market jitters 50% pound 40%

Sentiment Analysis

Negative

Score: -0.30

Source Transparency

Source

The Guardian - World News

Political Lean

Center-Left (-0.40)

Far LeftCenterFar Right

Classification Confidence

90%

This article was automatically classified using rule-based analysis. The political bias score ranges from -1 (far left) to +1 (far right).

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uk borrowing costs bond yields political instability keir starmer government bonds fiscal policy public finances market jitters pound

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