• UK borrowing costs neared their highest since 2008, sterling slumped, and shares fell as investors brace for a potential change of leadership endangering fiscal rigour.
  • The benchmark 10-year gilt yield jumped 11 basis points to 5.11%, just below the highest since 2008, while the 30-year yield rose 10 bps to 5.78%.
  • Sterling dropped 0.5% to $1.354, and the FTSE 100 index fell nearly 1%.
  • Jefferies analysts said any replacement would likely be left-leaning and negative for long-dated bonds and the currency.
  • Bank stocks fell, with Barclays dropping 4%, and Natwest and Lloyds down over 3%.

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