Pound Advances to Strongest Since January After GDP; Gilts Fall

The pound rose to the strongest level since January against the dollar after a government report confirmed Britain’s economic growth accelerated in the third quarter, boosting demand for U.K. assets.

Sterling advanced versus all of its 16 major counterparts as the data showed investment and house building helped to offset a decline in exports, adding to evidence the recovery is gaining traction. U.K. gilts declined as demand for safer assets waned even after policy maker Ian McCafferty said the Bank of England is not in a rush to increase interest rates. Thirty-year bonds fell before the Debt Management Office sells 2.5 billion pounds ($4.1 billion) of securities due in 2044 tomorrow.