UK government bonds fell as a growing number of Labour party politicians called on their leader Keir Starmer to step down following large losses in local elections last week.

The yield on 10-year gilts rose as much as 10 basis points to 5.10% on Tuesday, as investors fret that a potential change in leadership could result in increased fiscal spending to win back disaffected voters. The pound was 0.2% weaker against the euro, its lowest since late April.