Sterling and U.K. government bonds, or gilts, recovered Thursday after Prime Minister Keir Starmer backed Treasury chief Rachel Reeves, having initially sidestepped questions about her future in parliament on Wednesday.

Starmer refused to confirm Reeves would remain in her post during the Prime Minister’s Questions Wednesday, following a rebellion within his Labour Party over welfare reforms. This caused sterling and gilts to sell off sharply. A new welfare bill passed in a parliamentary vote Tuesday but only after the government made major concessions.