On Monday afternoon the pound fell against the euro as the government remains embroiled over the Peter Mandelson scandal.
On Monday afternoon borrowing costs spiked and in response to the Scottish leader Anwar Sarwar calling on Sir Keir Starmer to resign both the 10-year and 30-year guilts soared.
Sarwar said during a hastily arranged press conference, “This isn’t easy and it’s not without pain, as I have a genuine friendship with Keir Starmer. But my first priority and my first loyalty is to my country, Scotland.
“That’s why the distraction needs to end and the leadership in Downing Street has to change. We cannot allow the failures at the heart of Downing Street to mean the failures continue here in Scotland.
10-year guilts soared to 4.567% and the 30-year guilts remained slightly high at 4.389%, this coms after a muted response of Morgan McSweeney’s resignation on Sunday afternoon.
Russ Mould, investment director at AJ Bell, said, “Politics were front of mind for investors in the UK after the resignation of chief of staff, Morgan McSweeney.
“Gilt yields and the pound nudged slightly higher as markets digested ongoing speculation about the future of Keir Starmer as Prime Minister. Movement among government bonds and the currency suggests there is no panic on financial markets about the stability of the UK Government.”
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