The pound and gilts edged higher after UK Prime Minister Keir Starmer resigned and the path to power began to clear for the frontrunner to succeed him.

Traders added to wagers for Federal Reserve interest-rate hikes, fully pricing a quarter-point increase by September after a spike in oil prices revived inflation concerns.

The UK’s government bonds fell after Andy Burnham’s victory in a special election renewed political uncertainty, prompting investors to demand a higher premium to hold the country’s debt.

Faced with ongoing volatility in the oil market, Bank of England Governor Andrew Bailey and his colleagues are trying to strike a path that’s tough on inflation without harming growth and jobs. To do so, they’re taking a history lesson in football.

Gilts extended their winning streak to five days after UK inflation held steady in May, easing pressure on the Bank of England to raise interest rates.

Treasuries fell Wednesday after a gauge of private-sector employment growth left intact expectations that the Federal Reserve will raise interest rates this year.

Treasuries retreated from near their best levels of the past month as the first of three labor-market reports this week backed wagers that the Federal Reserve’s next move will be to raise interest rates.

Traders trimmed wagers on the extent of interest rate hikes from the Bank of England this year, fueled by falling oil prices on optimism over signs of progress in talks between the US and Iran.

After starting the week at their highest in almost three decades, yields on long-dated gilts are poised for their biggest drop in more than two years.

UK bonds edged higher on Monday, though yields remained near multi-year highs as investors weighed the fiscal implications of Manchester Mayor Andy Burnham potentially challenging for UK Prime Minister.

UK government bonds tumbled after Manchester Mayor Andy Burnham secured a pathway to potentially challenge Keir Starmer as prime minister, threatening political instability that investors fear could result in more expansive fiscal policy.

UK government bonds tumbled after Manchester Mayor Andy Burnham secured a pathway to potentially challenge Keir Starmer as prime minister, threatening political instability that investors fear could result in more expansive fiscal policy.

The UK bond market tumbled, driving long-term bond yields back to the highest in nearly three decades, as speculation over Keir Starmer’s future as prime minister renewed concern about the weakened state of Britain’s finances.

The UK bond market tumbled, driving long-term bond yields back to the highest in nearly three decades, as speculation over Keir Starmer’s future as prime minister renewed concern about the weakened state of Britain’s finances.

UK bonds were swept up in another selloff as investors grew increasingly anxious about Britain’s finances, given the risk of fresh challenges to Prime Minister Keir Starmer’s leadership.

UK bonds were swept up in another selloff as investors grew increasingly anxious about Britain’s finances, given the risk of fresh challenges to Prime Minister Keir Starmer’s leadership.

Global bonds rallied as the prospect of a peace deal between the US and Iran drove down energy prices, curbing bets on interest-rate hikes as inflation expectations eased.

UK long-term borrowing costs jumped to a 28-year high as worries intensified over local government elections and the impact of soaring energy prices on the economy.

The UK will begin selling 12-month Treasury bills at its weekly auctions, as part of the government’s efforts to tilt its borrowing toward shorter-maturity debt.

Treasuries rose as oil benchmarks retreated toward last week’s lows, lessening pressure on future inflation readings that have become the bond market’s main driver.