UK gilt yields surge as Starmer's grip begins to slip

May 12 (Reuters) - Long-dated ​British ⁠government yields surged ​in early trade on Tuesday ​as Prime ‌Minister Keir Starmer's grip on ⁠power weakened further ⁠overnight, with ​growing numbers of governing Labour Party lawmakers calling for his resignation.

Twenty- ​and ‌30-year gilt yields rose close to their highest levels since 1998, a ​milestone struck earlier this ‌month, rising around 9-10 basis points on the ‌day to 5.703% and 5.773%.

The rise in long-dated bond yields ​in part reflect concerns around fiscal ‌sustainability. Gilt investors are wary that any successor to Starmer ⁠could ⁠further increase borrowing.

Financial ‌markets are watching closely for ​clear ​signs of fracture among ‌his members of his cabinet. (Reporting by Andy Bruce, Editing by Paul Sandle)