City investors warn Labour leadership contest risks bond market crisis

City investors warned Tuesday that a Labour leadership contest could trigger another bond market crisis like Liz Truss's 2022 collapse. UK gilt yields briefly hit 5.8%, their highest since 1998, as uncertainty gripped Westminster. Markets fear political instability combined with Labour's potential leftward shift toward higher borrowing without credible growth plans would prove disastrous.

Summary by Glance · The Guardian Australia – Business