The UK 10-year gilt yield rose to 4.422% after dipping below 4.4% on Tuesday, its lowest level since December 2024, as investors reacted to political uncertainty and pre-budget jitters. Market nerves were stirred by reports of a denied attempt to challenge Prime Minister Keir Starmer’s leadership, with allies warning such a move could destabilize markets and lift gilt yields. The situation comes amid scrutiny of recent UK jobs data, which showed unemployment rising to 5%. Economists questioned the reliability of the figures, citing erratic trends and ongoing issues with the ONS Labour Force Survey. Bank of England rate-setter Megan Greene also noted data complications. The jobs report initially fueled expectations of a Bank of England rate cut in December, with markets now pricing in an 80% probability. Investors are awaiting Thursday’s Q3 GDP data for further insight into the economy ahead of the upcoming UK budget.