U.K. 10-Year Gilts Drop a Second Day as Services Expand
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U.K. government bonds declined for a second day after a report showed services expanded in February at a faster pace than analysts forecast, damping speculation the Bank of England will add more stimulus.
Sterling appreciated to the strongest level in a week versus the euro before the central bank announces on March 7 whether it will increase asset purchases, known as quantitative easing, to boost growth. Bank of England policy makers begin their monthly rates-setting meeting tomorrow after minutes released Feb. 20 showed they split on the need to expand stimulus last month. The yield on 10-year gilts dropped 24 basis points last week, the most since the period ended Nov. 4, 2011.