Blain’s Morning Porridge May 6th, 2026 – Gilts and the Labour Party; the Judder Moment“Apres Moi le deluge...”The UK is not about to disappear in a puff of smoke because the Gilts Market is having a minor tantrum. But there is a serious Political Competency premium on Gilts, which will rise when the scale of Labour’s defeat becomes apparent, and the Starmer premiership is up against the wall. Trouble ahead.It’s two weeks since I last wrote about my growing concerns for the Gilt Market: “Gilts Wobble as Much as Starmer.”After the yield on the 30-year Gilt hit 5.81% y’day, perilously close to the key psychological 6% level, there is a definite sense of a Judder Moment. (This morning The Long Gilt it at 5.75%, 17 basis points higher than April 22nd!)The mood wasn’t help by bond guru Mo The Tash, (El-Erian) ex-of Pimco, yesterday tweeting his “concerns about the economic health of the nation” … A few weeks ago, El-Erian observed in the FT that Gilts have become “temperamental, overreacting to the slightest provocation.” That’s a great definition of a nervous market.You can read the Morning Porridge by subscribing on ⁠www.morningporridge.com⁠, and have it delivered fresh to your inbox every morning!

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