UK 10-year borrowing costs drop to day's low as likely PM Burnham speaks

British 10-year government borrowing costs edged down to a day's low on Monday as former Greater Manchester Mayor Andy Burnham gave his first public speech since winning an election for a seat in the Westminster parliament.

Burnham — the only declared challenger so far to Prime Minister Keir Starmer — repeated his pledge to stick to existing budget rules while prioritising regional equality.

Ten-year government bond yields (GB10YT=RR) dropped as low as 4.727% at 1113 GMT, down from 4.747% shortly before Burnham spoke, while 10-year gilts' yield premium over German bonds (DE10GB10=RR) narrowed to 186 bps from 188 bps.