{"id":61857,"date":"2026-05-12T13:38:22","date_gmt":"2026-05-12T17:38:22","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/starmer-defiant-amid-labour-revolt-us-10-year-yields-climb-to-4-46\/61857\/"},"modified":"2026-05-12T13:38:22","modified_gmt":"2026-05-12T17:38:22","slug":"starmer-defiant-amid-labour-revolt-us-10-year-yields-climb-to-4-46","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/starmer-defiant-amid-labour-revolt-us-10-year-yields-climb-to-4-46\/61857\/","title":{"rendered":"Starmer Defiant Amid Labour Revolt; US 10-Year Yields Climb to 4.46%"},"content":{"rendered":"<h2>Key Takeaways<\/h2>\n<ul>\n<li><strong>UK Prime Minister Keir Starmer faces a massive leadership crisis<\/strong> as over <strong>90 Labour MPs<\/strong> call for his resignation following &quot;devastating&quot; local and devolved election losses.<\/li>\n<li><strong>US 10-Year Treasury yields rose to 4.468%<\/strong> in a $42 billion auction, signaling tightening credit conditions and a slight dip in investor demand compared to previous sales.<\/li>\n<li><strong>The White House dismissed reports of a $1 trillion US-China investment deal<\/strong> as &quot;baseless and false&quot; ahead of President Trump\u2019s high-stakes visit to Beijing this week.<\/li>\n<li><strong>Greater Manchester Mayor Andy Burnham is reportedly holding &quot;secret meetings&quot;<\/strong> in London with MPs, fueling speculation of a return to Westminster to challenge for the party leadership.<\/li>\n<li><strong>A loyalist bloc of 112 Labour MPs<\/strong> issued a public statement supporting Starmer, arguing that a leadership contest would be a dangerous distraction from the &quot;hard job&quot; of governing.<\/li>\n<\/ul>\n<h2>Labour Leadership Crisis Deepens<\/h2>\n<p>Prime Minister Keir Starmer is fighting for his political survival as the <strong>Labour Party<\/strong> descends into open civil war following a disastrous set of election results. While <strong>112 loyalist MPs<\/strong> signed a statement today declaring &quot;this is no time for a leadership contest,&quot; the pressure from the opposite side is mounting rapidly. More than <strong>90 MPs<\/strong> have now publicly called for Starmer to step down or set a firm departure timeline, citing a loss of public trust after the party lost control of over 30 councils and slumped to third place in Wales.<\/p>\n<p>Health Secretary <strong>Wes Streeting<\/strong> is scheduled to hold urgent talks with Starmer at Downing Street tomorrow morning to discuss the &quot;turbulence&quot; gripping the party. Streeting, often viewed as a potential successor, is expected to ask the Prime Minister for a clear plan to navigate the current &quot;mess.&quot; Meanwhile, Foreign Secretary <strong>David Lammy<\/strong> has dismissed the rebellion as a &quot;busted flush,&quot; arguing that critics have failed to coalesce around a single alternative candidate.<\/p>\n<p>Adding to the instability, Greater Manchester Mayor <strong>Andy Burnham<\/strong> was spotted in London today for what sources describe as &quot;discreet gatherings&quot; with supportive MPs. Burnham is reportedly seeking a path back into Parliament via a by-election, a move that would allow him to formally challenge for the leadership. His allies are currently pushing for a longer resignation timetable for Starmer to facilitate this transition, even as other cabinet members urge unity.<\/p>\n<h2>US Treasury Yields Edge Higher<\/h2>\n<p>In the financial markets, the <strong>U.S. Treasury Department<\/strong> concluded a <strong>$42 billion auction of 10-year notes<\/strong> today with a high yield of <strong>4.468%<\/strong>. This represents a significant increase from the <strong>4.282%<\/strong> recorded in the previous sale, reflecting broader market expectations of sustained higher interest rates. The <strong>bid-to-cover ratio<\/strong>, a key measure of demand, softened slightly to <strong>2.40<\/strong> from the previous <strong>2.43<\/strong>.<\/p>\n<p>The auction results indicate a cautious environment for fixed-income investors as they weigh persistent inflationary pressures against global geopolitical risks. <strong>Indirect bidders<\/strong>, which include foreign central banks, took <strong>64.0%<\/strong> of the offering, down from <strong>65.3%<\/strong> in the prior auction. Market analysts suggest the &quot;tail&quot; of 0.4 basis points\u2014the difference between the high yield and the pre-sale &quot;when-issued&quot; rate\u2014indicates that demand was slightly weaker than anticipated.<\/p>\n<h2>White House Denies $1 Trillion China Deal<\/h2>\n<p>The <strong>White House<\/strong> moved quickly today to quash rumors of a massive <strong>$1 trillion investment deal<\/strong> between the U.S. and China. Reports had suggested that President Trump and President Xi Jinping were considering a deal to allow Chinese firms to build factories on American soil. White House spokesperson Kush Desai labeled the reports &quot;baseless and false,&quot; emphasizing that the administration would never compromise national security for industrial investment.<\/p>\n<p>Despite the denial, a high-level U.S. delegation is set to arrive in Beijing tomorrow for a three-day summit. The delegation includes 17 prominent CEOs, including <strong>Elon Musk<\/strong> of Tesla (<a href=\"\/stock\/TSLA\">TSLA<\/a>), <strong>Tim Cook<\/strong> of Apple (<a href=\"\/stock\/AAPL\">AAPL<\/a>), and <strong>Kelly Ortberg<\/strong> of Boeing (<a href=\"\/stock\/BA\">BA<\/a>). The summit is expected to focus on volatile trade issues, including a potential &quot;Board of Trade&quot; to manage goods without national security implications, such as agricultural products.<\/p>\n<p>The stakes for the Beijing summit are exceptionally high, as the <strong>Trump administration<\/strong> seeks to project stability while maintaining its aggressive tariff policy. Investors are closely watching for any signs of a &quot;truce&quot; that could alleviate the 145% tariff hikes imposed on certain Chinese goods last year. However, with the Supreme Court recently challenging the administration&#39;s authority to unilaterally impose such tariffs, the legal and logistical framework for any new trade agreement remains uncertain.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Key Takeaways UK Prime Minister Keir Starmer faces a massive leadership crisis as over 90 Labour MPs call for his 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