Gilts Fall on Bets Central Bank Buying Is Over; Pound Weakens

U.K. government bonds fell, pushing 10-year yields to the highest since April, amid speculation the Bank of England will refrain from resuming asset purchases this year and as sovereign debt dropped around the world.

Benchmark yields headed for the biggest weekly increase since January 2009 after the central bank said yesterday its Funding for Lending program helped increase the availability of mortgages and company loans. The pound weakened for a second day against the dollar after a report showed U.K. service industries shrank for the first time in two years. Investors demanded a higher yield to hold U.K. 10-year bonds instead of their French equivalents for the first time since April 2011.