UK100 just got hit by a political shockwave.

The FTSE 100 dropped 1.7%, bond yields surged to levels not seen in decades, and the pound came under heavy pressure after Andy Burnham signaled a path toward challenging Keir Starmer for Labour leadership.

Markets reacted fast because Burnham’s past comments on bond markets, utilities, fiscal rules, and nationalization fears instantly raised concerns about UK assets.

The bond market move was brutal.

The 30-year gilt yield jumped to 5.85%, the highest since 1998, while the 10-year yield hit 5.17%, its highest since 2008. Investors did not wait for confirmation — they started selling first.

Utility stocks took the hardest hit.

Severn Trent fell 7.9%, United Utilities dropped 7.6%, National Grid lost 7.1%, and SSE slipped 6.7% as nationalization fears returned. Banks also fell more than 2% on possible tax concerns.

At the same time, oil volatility and geopolitical tension added more pressure, keeping inflation fears alive and hurting risk sentiment.

Now the market is staring at one key level:

10,175 support.

Hold it, and UK100 could attempt a sharp oversold bounce toward 10,275.

Lose it, and this selloff could turn into a deeper UK asset crisis.

RSI near 27 shows the market is heavily oversold — but when politics drives the move, technicals can break fast.

UK100 is now trapped between bounce potential and political fear.

Would you buy the panic, or wait for clarity?