UK government borrowing costs surge and then fall as investors weigh the risks of Starmer's resignation and the King's Speech

The two-year UK bond yield fell by 5.3 basis points to 4.485%, staying in a downward trend throughout the day. It briefly reached 4.534% at 18:17 (UTC+8) during a short-term rally. The 30-year UK bond yield dropped by 2.7 basis points, while the 50-year UK bond yield declined by 2.8 basis points. The yield spread between the two-year and ten-year UK bonds widened by 1.666 basis points, settling at +57.907 basis points.