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FTSE 100 Live: BP tumbles on buyback suspension, Barclays profit boost

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Welcome to the CityAM FTSE 100 liveblog.

Good morning and welcome back to the CityAM liveblog.

It was a rocky day for bond markets on Monday as political jitters rippled through the City.

The 10-year gilt yield – a key benchmark for the government – rose as much as 10 basis points to 4.62 per cent following news that Scottish Labour leader Anas Sarwar would give a speech calling for Prime Minister Sir Keir Starmer to quit.

That came shortly after the resignation of Downing Street communications chief Tim Allan, marking the second such departure of a close Starmer aide in 24 hours.

The move in bond markets, which was more than double the average daily gilt yield move of around four basis points, meant 10-year yields had topped last week’s peak of 4.6 per cent to hit a four-month high.

But a rallying of the cabinet troops brought some reprieve to the market, with the yield dramatically falling over the course of the afternoon as top Labour names, including former deputy Prime Minister and speculated-leadership candidate Angela Rayner handed Starmer her backing.

Kathleen Brooks, research director at XTB, said: “This is likely to be an unsettling time for UK bond investors, as any successor could push UK economic policy further to the left, which may trigger a selloff in UK debt.”

With the looming drop of the Mandelson files ahead, bond traders – and the government – may be bracing for more to come.

We’ll be bringing you the latest market updates as they unfold.

Here’s a few of our top stories from yesterday: