Investors are significantly reducing their positions in the UK as London's financial district braces for a potential Labour leadership change. According to Jin10, Mizuho Securities has expressed a loss of confidence in UK government bonds due to the uncertainty surrounding new leadership. Matt Amis, Investment Director at Aberdeen Asset Management, noted that the asset management giant has also cut its risk exposure, fearing a policy shift to the left under any successor to Sir Keir Starmer. On Monday, Scottish Labour leader Anas Sarwar called for the Prime Minister's resignation, causing the borrowing cost of 10-year government bonds to spike to 4.6%. Although UK bond yields fell back to around 4.53% after cabinet members publicly supported the Prime Minister, borrowing costs remained high throughout the day.