UK Prime Minister Starmer Resigns Amid Rebellion

UK Prime Minister Keir Starmer resigned on June 22, 2026, less than two years into his term, amid a rebellion, creating immediate market certainty and leading to a recovery in Sterling and Gilt yields after initial drops. The British pound initially dropped 1.16% to 1.110 against the US dollar on Friday morning, driven by fiscal uncertainty. Subsequently, Sterling and Gilts recovered as market participants found certainty in the resignation of the Labour Party leader. 10-year gilt yields initially increased by a modest 4 basis points following the announcement. Starmer's departure as both Prime Minister and Labour Party leader followed a period of political instability.