UK yields eating into the FTSE 100

The US bond markets might be closed today, but not so here in the UK. The impact of the Labour party election win in the Makerfield by-election has put Andy Burnham into a position where he might soon challenge the Prime Minister, Sir Keir Starmer. For his part Starmer has said he will stand against anyone who tries to challenge him. 

This has created further political uncertainty and not done the GILT (UK government bonds) any favours. They have been sold quite aggressively this morning and whilst that might have helped the GBP/USD to rebound with higher yields it is not conversely doing the UK stock markets any favours. So, the UK 10 year yield has risen as high as risen above 4.82%, where it was pushing towards 4.70% earlier in the week. 

So, earlier today the FTSE reached 10,418 but since the GILT market opening it has fallen back to below 10,375 right now