UK 10-year gilt yield fell to an intraday low of 4.727% during remarks by a potential successor to the prime minister, Burnham, down 1bp on the day.

The Financial Times reports the Royal Navy will order at least six general-purpose combat vessels able to deploy unmanned air and undersea systems, a plan due to be announced this week. The ships, intended as part of the Type 45 destroyer replacement, will be the navy's first hybrid-powered warships and are expected to enter service in the early 2030s. The Labour government is set to abandon a long‑planned eight-ship Type 83 destroyer programme and cancel the five-ship Type 32 frigate programme first announced in 2020 in favour of the new general-purpose vessels. The defence secretary’s final plan is expected to add at least £1bn to defence spending, raising new defence investment by more than £14.5bn versus earlier plans. Government says the vessels will act as unmanned-systems control hubs, extending operational reach and firepower without a proportionate increase in crew or cost.

European Investment Bank (EIB) and Airbus signed a €1 bln loan, the first tranche of a €3 bln financing package.