Published: June 3, 2026 β’ 4:05 PM IST Β· Updated: June 3, 2026 β’ 5:48 PM ISTBy TheBriefWire Editorial Team
Key points
The U.K. has the highest borrowing costs in the G7, with yields on its long-term gilts trading well above the critical 5% threshold.
Political instability and Burnham's bid to return to Westminster has sent jitters through the U.K.'s government bond market in recent weeks, amid expectations that he would be a tack to the left from Starmer and ramp up borrowing.
Starmer's premiership has been under intense pressure following a crushing defeat for the ruling Labour Party in the U.K.'s local elections.
Burnham β who is not yet a sitting member of the U.K. parliament β will run in the June 18 by-election in Makerfield, north-west England.
If he wins the seat, he is widely expected to launch a formal challenge to usurp Starmer's position.
Quick context: has the highest borrowing costs in the G7, with yields on its long-term gilts trading well above the critical 5% threshold.