Pound Is Little Changed as U.K. Consumer Confidence Declines

The pound was little changed as a report showed U.K. consumer confidence unexpectedly declined this month.

Sterling rose to the highest level in more than two months against the U.S. currency yesterday. A sentiment index published by GfK NOP Ltd. fell to minus 27 from minus 26 in March, the London-based group said in a report today. Economists had forecast no change, according to the median of 19 estimates in a Bloomberg News survey. The Debt Management Office is scheduled to sell 500 million pounds ($774 million) of inflation-linked gilts maturing in 2062 in a so-called mini tender.

The pound traded at $1.5483 at 7:52 a.m. London time, after strengthening to $1.5546 yesterday, the most since Feb. 15. Sterling was at 84.47 pence per euro, after appreciating to 83.98 pence on April 26, the strongest since Jan. 24.

The pound has gained 1.4 percent in the past month, according to Bloomberg Correlation-Weighted Indexes that track 10 developed-nation currencies. Sterling is still down 3 percent this year.

The U.K. last sold the 2062 index-linked securities via banks on May 29, 2012, at a real yield of 0.040 percent, the lowest-ever for a 50-year inflation-protected bond, according to the debt office.

U.K. gilts returned 1.3 percent this month through yesterday, extending this year’s gain to 1.9 percent, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bonds gained 1.1 percent in 2013 and U.S. Treasuries earned 0.9 percent.

To contact the reporter on this story: Neal Armstrong in London at narmstrong8@bloomberg.net

To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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