U.K. bond yields fall after Andy Burnham names John Healey chancellor

According to CNBC, U.K. gilt yields fell across the curve after new Prime Minister Andy Burnham named John Healey as Chancellor of the Exchequer and announced a cut in sales tax on household electricity bills from 5% to 0% from October. The measure will cost £850 million in 2026-27 and will be funded by scrapping the government's Digital ID program, which was expected to cost £1.8 billion over the next three years. Over the past month, the benchmark 10-year gilt yield has risen about 19 basis points and the 30-year gilt yield has gained around 21 basis points. Burnham and Healey said the electricity tax cut was intended to give households breathing room, while Healey is expected to prioritize defense spending. J.P. Morgan CEO Jamie Dimon said he wants Burnham to succeed and urged the incoming chancellor to focus on policies that support growth.