June 16 (Reuters) - If Andy Burnham's bid to become Britain's next prime minister is successful, gilts and the pound will be primed to react to his choice of finance minister.

Shabana Mahmood and Ed Miliband are reportedly in the frame for the second most important job in the British government, if Burnham succeeds Keir Starmer and opts to replace Rachel Reeves.

Gilt yields might rise, to the detriment of sterling, if Miliband - who is on the 'soft left' of the Labour Party - enters 11 Downing Street. In contrast, gilt yields could fall, and the pound strengthen, if Burnham decides to either keep Reeves in her job or pick centrist Mahmood to replace her. Burnham's bid to become leader is dependent upon him winning the Makerfield by-election Thursday - which he is favoured to do, helped by feuding between Reform UK and Restore Britain. The Financial Times, meanwhile, reports that "Burnham plans to give Starmer 'space' to resign after by-election, allies say."

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(Robert Howard is a Reuters market analyst. The views expressed are his own)