Gilts Advance on Bets Central Banks to Keep Easing; Pound Falls
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U.K. government bonds advanced for a third day amid bets the Federal Reserve and other central banks will maintain monetary stimulus to keep borrowing costs low.
Benchmark 10-year gilts extended their winning streak to the longest in two months as a measure of inflation expectations was near the lowest since January. The Bank of England said today that Deputy Governor Paul Tucker, who has voted against expanding the central bank’s asset-purchase plan, will leave after helping Mervyn King’s successor Mark Carney settle into his new post. The pound weakened against the dollar after advancing to a four-month high yesterday.