UK borrowing costs fall and pound rises after Starmer says he will stay as PM

Bond yields drop as market fears ease that Labour leader will be replaced by a more leftwing rival

UK government borrowing costs fell and the pound rose on Friday as Keir Starmer vowed to remain as prime minister despite the Labour party losing hundreds of council seats across England.

Investors calculated that some of the intense pressure on Starmer’s leadership had eased, as Labour appeared on track for smaller losses than election experts had predicted.