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Mohamed A. El-Erian, president at Queens' College, University of Cambridge, observes that the UK government bond market has shown little reaction to the announcement made by Prime Minister Starmer this morning.
El-Erian points out that investors are now focusing on the likely successor and the need for further clarity regarding the future direction of economic policy.
El-Erian has recently drawn attention to the growing rollover risk as U.S. public debt approaches record levels, citing concerns for Treasury funding in a previous commentary. He also noted that gold's share of global official reserves reached 27% at the end of 2025, overtaking both euro and U.S. Treasuries, as detailed in a separate report. These observations come amid heightened investor focus on evolving financial risks.