U.K. Gilts Fall as Mortgage Approvals Rise; Pound Drops
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U.K. government bonds fell, with 30-year yields climbing to the highest level since April, after a report showing mortgage approvals increased in December reduced demand for fixed-income securities.
Benchmark 10-year gilts dropped for the fourth time in five days amid signs the Bank of England’s efforts to spur growth, including its Funding for Lending Scheme to encourage banks to offer more loans, are helping spur an economic recovery. The pound weakened to a 13-month low against the euro after European economic confidence improved.