Gilts Advance on Speculation BOE Will Boost Asset Buying
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U.K. government bonds advanced, with 10-year yields dropping the most this year, amid speculation the Bank of England will increase its asset-purchase program as the economy stalls.
The pound climbed from a 15-month low against the euro and German bunds advanced after a report showed services and manufacturing in the 17-nation region shrank in February, boosting demand for safer assets. Sterling earlier fell to the weakest since July 2010 against the dollar after the Federal Reserve signaled it may slow the pace of its bond-buying program, while more Bank of England policy makers voted this month to boost stimulus. The U.K. auctioned 10-year gilts.