‘There is a good deal of fear’: what would a Labour leadership challenge mean for bond markets?

Angela Rayner and Andy Burnham are among the leading candidates to replace Keir Starmer as Labour leader after the local elections. Photograph: James Manning/PA

Who calls the shots on the bin collections in Sunderland, potholes in Hackney, or schools in Cardiff is not normally of interest to City traders in the multitrillion-pound sovereign bond market.

But for those dealing in UK government debt, Thursday’s local and devolved government elections are significantly more important than usual, amid speculation that a dire showing for Keir Starmer’s Labour party could topple him as prime minister.