Pound Lower, Gilts Steady as UK Prime Minister Starmer Resigns

Britain's pound and government bond prices were lower on Monday following the resignation of Prime Minister Keir Starmer. Sterling was last down 0.27% at $1.3202, showing little change on levels traded earlier, while holding steady against the euro at 0.867 pounds. Benchmark 10-year UK gilt prices were also relatively steady, leaving yields up 1 basis point on the day at 4.85%, unchanged from where they were prior to the announcement. British share indexes held steady after the announcement, with the blue chip FTSE 100 index a whisker lower on the day, and mid caps down 0.5%. Pressure had been building on Starmer for months due to his handling of the economy. Focus is expected to turn to who rival Andy Burnham picks as finance minister to take over from Rachel Reeves.