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UK Gilt Yields Spike 5.77% Amid Labour Leadership Rumors

5/6/2026

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Summary

Story summary

Investors pushed UK gilt yields to highs after speculation that Labour could face a leadership challenge.
30-year gilt yield rose to 5.77% on Tuesday, with 10-year exceeding 5%.
The FTSE 100 fell about 130 points, or 1.27%, to 10,232.71 at 1 pm.
RSM UK chief economist Thomas Pugh warned that a Labour leadership contest could push gilt yields higher.
The national debt stands at about £2.9 trillion, nearly equal to annual GDP.

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Story summary

Investors pushed UK gilt yields to highs after speculation that Labour could face a leadership challenge.
30-year gilt yield rose to 5.77% on Tuesday, with 10-year exceeding 5%.
The FTSE 100 fell about 130 points, or 1.27%, to 10,232.71 at 1 pm.
RSM UK chief economist Thomas Pugh warned that a Labour leadership contest could push gilt yields higher.
The national debt stands at about £2.9 trillion, nearly equal to annual GDP.