UK long-dated bond prices fall as Starmer's future hangs in the balance

May 11 (Reuters) - Long-dated ​British government ⁠bond prices fell on ​Monday as speculation over a leadership ​challenge to ‌Prime Minister Keir Starmer ramped up ⁠following heavy local election losses ⁠for the Labour ​Party last week.

The 30-year gilt yield, which moves inversely to the price, ​rose ‌by more than 5 basis points in early trade to 5.64%. French, German and U.S. equivalent ​bond yields were up by 1-2 bps.

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.

Starmer is due to deliver ‌a speech on Monday in an attempt to shore up support among his ⁠lawmakers.

A ⁠small but growing number ‌of them have called for his resignation and ​investors ​are watching closely for ‌any sign of fracture among his members of his cabinet. (Reporting by Andy Bruce Editing by William Schomberg)