UK government borrowing costs fell on Friday as Labour leader Keir Starmer affirmed his commitment to remain Prime Minister, despite the party losing hundreds of council seats in local elections across England. The yield on benchmark UK 10-year gilts dropped to 4.89%, down 5 basis points, while thirty-year bond yields fell to 5.56%, their lowest in over two weeks. The pound also strengthened, gaining three-quarters of a cent against the US dollar. Market analysts noted that fears of increased government spending under a potentially more leftwing leader had contributed to previous rises in borrowing costs. Matthew Ryan, head of market strategy at Ebury, indicated that investors were relieved by Starmer's commitment, which alleviated concerns over political instability. However, Neil Wilson from Saxo UK cautioned that any new leadership would face the same fiscal challenges, potentially leading to higher interest rates and gilt yields. The City consultancy Capital Economics echoed this sentiment, suggesting that a change in leadership would likely not improve medium-term economic growth prospects.