Political instability in the United Kingdom is expected to exert pressure on the pound and UK government bonds, according to an analysis by ING's Chris Turner. The resignation over the weekend of Prime Minister Keir Starmer's close ally and chief of staff, Morgan McSweeney, due to his involvement in the appointment of Peter Mandelson as the UK's ambassador to Washington, has fueled market concerns. These concerns center on the potential for a shift in the country's leadership, which could lead to looser fiscal policy and increased public borrowing. Such a scenario would likely prompt investors to price a higher risk premium into UK assets. Data from Tradeweb indicates that the yield on the 10-year UK government bond rose by 2.3 basis points, last trading at 4.546%. Meanwhile, the euro strengthened by 0.4% against the pound, reaching 0.8714 after touching a two-week high of 0.8726.