Economics
Gilts Slide on Growth Optimism; Pound Jumps
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The pound strengthened for a second day against the dollar after an industry report showed U.K. services expanded at the fastest pace in six years in July, adding to signs the recovery is gathering momentum.
Sterling gained for a third day versus the euro after data last week showed U.K. manufacturing and construction both rose more than economists forecast. U.K. government bonds declined as demand for the safety of fixed-income securities waned. Five-year gilts dropped for a fifth day before the nation sells 4.5 billion pounds ($6.9 billion) of the securities tomorrow.