Gilt Yields Fall to Eight-Week Low on U.S. Payrolls; Pound Rises

U.K. government bonds rose, pushing 10-year yields to the lowest level since August, after a U.S. report showing American employers added fewer workers than economists forecast boosted demand for safer assets.

Benchmark gilts advanced for the third time in four days as the payroll data fueled speculation the Federal Reserve will maintain asset purchases to help keep borrowing costs low. The U.K. Debt Management Office sold 4.5 billion pounds ($7.28 billion) of bonds maturing in 2068 via banks today. The pound strengthened to a two-week high against the dollar and fell versus the euro.