UK Gilt Yields Rise as Borrowing Hits £23.3 Billion in May

UK public borrowing increased unexpectedly to £23.3 billion ($30.8 billion) in May, marking the highest level for the month in six years, and was significantly above the £18.9 billion economist forecasts. This comes as Andy Burnham, who won a special election with nearly 55% of the vote, may challenge Prime Minister Sir Keir Starmer for leadership. The yield on 10-year Gilts rose over 6 basis points to 4.8162% amid concerns over potential inflation risk. Investors may anticipate an inflation premium impacting government bonds due to the rise in fiscal scrutiny.