UK gilts rebound as Starmer backs Reeves to remain as chancellor

Published 03/07/2025, 11:34
© Reuters.

Investing.com -- UK government bonds rebounded Thursday, outperforming their peers after Prime Minister Keir Starmer expressed his support for Rachel Reeves to continue as chancellor "for many years to come."

The yield on 30-year UK gilts dropped 11 basis points, nearly erasing Wednesday’s surge. This positive movement in the bond market came following Starmer’s vote of confidence in Reeves.

In currency markets, the pound stood out as the only G-10 currency to gain ground against the US dollar during Thursday’s session.

The strong performance of UK government debt and currency followed the prime minister’s public backing of his chancellor, providing some stability to UK financial markets after Wednesday’s volatility.

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