---
title: "Sterling slips as Starmer resignation rattles markets"
publisher: "Share Talk"
author: "sharetalk"
published: "2026-06-22T09:06:31+00:00"
modified: "2026-06-22T09:06:31+00:00"
date: 2026-06-22
canonical: "https://www.share-talk.com/sterling-slips-as-starmer-resignation-rattles-markets/"
category: "Blogs"
categories: ["Blogs", "Technology", "Technology, Media & Telecoms"]
tags: ["Andy Burnham", "BRITAIN", "Downing Street", "European markets", "London", "Makerfield by-election", "Prime Minister", "Sir Keir Starmer", "sterling", "UK", "UK Government"]
image: "https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/06/Sir-Keir-Starmer-22-june-26.webp?fit=1200%2C802&ssl=1"
format: "news"
language: "en-GB"
---

# Sterling slips as Starmer resignation rattles markets

**Published:** June 22, 2026
**Author:** sharetalk
**Categories:** Blogs, Technology, Technology, Media & Telecoms
**Tags:** Andy Burnham, BRITAIN, Downing Street, European markets, London, Makerfield by-election, Prime Minister, Sir Keir Starmer, sterling, UK, UK Government
**Featured image:** ![](https://i0.wp.com/www.share-talk.com/wp-content/uploads/2026/06/Sir-Keir-Starmer-22-june-26.webp?fit=1200%2C802&ssl=1)

---

Sir Keir Starmer’s decision to step down as Prime Minister sent ripples through financial markets, with UK borrowing costs rising and sterling weakening as investors assessed the prospect of a leadership change.

The yield on 10-year government bonds climbed from 4.84% to 4.85% following the announcement, bucking the trend seen across major European markets where borrowing costs fell. Rising gilt yields indicate investors are demanding a higher return to lend to the UK government, reflecting increased uncertainty over future fiscal policy.

Sterling also came under pressure, falling 0.2% against the US dollar to below $1.32 and slipping 0.1% against the euro as markets reacted to the prospect of Britain appointing its seventh prime minister in a decade.

Investor concerns appear to be centred on who may succeed Starmer and what that could mean for public spending and borrowing. Attention has focused on Andy Burnham following his commanding victory in the Makerfield by-election, with markets weighing the potential implications for the UK’s fiscal outlook and its near £3 trillion national debt.

In a statement outside Downing Street, Starmer acknowledged growing pressure from within Labour, saying the party had asked whether he remained the best person to lead it into the next general election.

“I have heard the answer of my parliamentary party to that question, and I accept that answer with good grace,” he said.

Analysts expect markets to remain focused on political developments when trading resumes, with government bonds likely to remain under scrutiny as investors seek greater clarity on the future direction of economic policy.

---

**Original URL:** https://www.share-talk.com/sterling-slips-as-starmer-resignation-rattles-markets/
*Created by [WP Markdown Endpoint](https://wpmarkdownendpoint.com/)*