UK bond yields drop for second day as Burnham seeks to reassure investors

LONDON, May 19 (Reuters) - British ​government ⁠borrowing costs fell for ​a second day on Tuesday after news ​reports ‌said the most likely challenger to ⁠Prime Minister Keir Starmer will not ⁠overhaul Britain's ​borrowing rules.

Ten-year British government bond yields were down by around 5 basis points at ​5.07% ‌at 0814 GMT having fallen by about 7 basis points on Monday.

The fall so far this ​week takes the 10-year yield back ‌to around its level before a jump on Friday which ‌was spurred by worries about the possibility of Andy Burnham, the left-wing mayor of ​Greater Manchester, taking over from Starmer.

Burnham, who ‌has yet to secure a seat in parliament before he can bid for ⁠the ⁠leadership of the Labour ‌Party, has signalled he will not change the ​fiscal ​rules of finance minister ‌Rachel Reeves, according to reports by ITV News and Bloomberg. (Writing by William Schomberg, editing by Andy Bruce)