UK borrowing costs rise and sterling falls as traders brace for Burnham

UK government borrowing costs have jumped at the start of trading, and the pound has fallen, as City traders respond to the news that Andy Burnham now has a chance to become Labour’s next leader.

UK bond prices have dropped at the start of trading, which pushes up the yield (or interest rate) on these gilts, while the pound has dropped against the US dollar.

Yesterday, Burnham was handed a potential route back to parliament when Josh Simons , MP for Makerfield, announced that he is resigning to free up a seat for Burnham .

Burnham , the Greater Manchester mayor, confirmed he would ask Labour’s ruling national executive committee (NEC) to allow him to stand in the contest.…