Société Générale's Kit Juckes poses a critical question: How long can the gilt market police UK politics? With Keir Starmer's premiership described as beleaguered, the bond vigilantes have emerged as unlikely supporters of his government, raising questions about market-political dynamics.

Labour maintains a parliamentary majority, making Starmer vulnerable to replacement yet giving him leverage. Juckes explains the bond market supports Starmer because any successor would likely increase spending, while Starmer himself may expand fiscal policy to shore up support despite market concerns.

Sterling remains stable due to already dire sentiment, but Juckes predicts the pound will ultimately suffer despite the gilt market's political influence. The markets now act as UK's political watchdog, but their ability to constrain politicians remains uncertain.