'Bond markets on edge' as King Charles sets out fragile U.K. government's agenda

U.K. gilts and bonds were hit by heavy selling pressure as investors reacted to renewed political uncertainty around Prime Minister Starmer ahead of the King's Speech. The move points to higher risk premia in U.K. sovereign debt and weaker sentiment toward duration assets. No specific yield level or price move was provided, but the tone was clearly risk-off.

Analysis

U.K. gilts and bonds were hit by heavy selling pressure as investors reacted to renewed political uncertainty around Prime Minister Starmer ahead of the King's Speech. The move points to higher risk premia in U.K. sovereign debt and weaker sentiment toward duration assets. No specific yield level or price move was provided, but the tone was clearly risk-off.