Political Shake-Up: Andy Burnham's Possible Return to Parliament

The British government bond yields saw a rise, accompanied by a drop in sterling, amid news of a lawmaker potentially stepping down. This opens the door for Manchester Mayor Andy Burnham’s possible return to Parliament, challenging Labour leader Keir Starmer ahead of upcoming local elections.

The British government bond yields reached their highest levels in over two weeks on Thursday, coinciding with a weakening of sterling. This financial movement followed reports from The Times suggesting a potential return to Parliament for Greater Manchester Mayor Andy Burnham, as a lawmaker considers stepping down.

At 1143 GMT, the 10-year British gilt yield spiked to 4.512% before declining to 4.475% at 1208 GMT. Sterling saw a decline of a third of a cent against the U.S. dollar, and gilt futures also experienced losses, although they did not significantly recover.

The Times indicated that Andrew Gwynne, representing Gorton and Denton, is likely to announce decisions about his political future. Gwynne, who has been an independent lawmaker since February 2025 after a suspension by Keir Starmer, might make way for Burnham's return.

(With inputs from agencies.)