Gilt Yields Hit 5.10% as Sterling Slides and UK Equities Sell Off
UK gilt yields surged to 5.10% in mid-May 2026 as Prime Minister Starmer faces a rebellion from more than 80 Labour MPs, triggering broad equity declines and pushing sterling lower against major currencies. JPMorgan has forecast a 3-to-5% banking surcharge, adding fiscal pressure on already stressed borrowing costs. Fed futures are pricing only a 1-in-3 chance of a US rate cut in 2026, leaving rate-sensitive UK markets with no global relief valve.
L.M. Salvado•