Bond Rally Eases UK 100 Volatility After Burnham Fiscal Pledge

Markets showed tentative relief as UK bonds posted their strongest week in 2.5 years after Andy Burnham committed to fiscal rules, while lower inflation and falling oil prices reduced near-term Bank of England rate-hike odds. The improvement follows weeks of political turmoil that began with bridging-loan stress rattling private credit and calls for a bolder City strategy. Mid-month revelations that Wes Streeting and Burnham would seek to rejoin the EU revived Brexit divisions, culminating in Streeting’s 20-minute resignation speech on 20 May amid nearly 90 Labour MPs urging Keir Starmer to quit. Latest ONS data showing zero house-price growth added economic headwinds, keeping volatility elevated for the UK 100 until the latest fiscal signals arrived.