The pound extended a decline versus the dollar after a report showed the U.K. services sector unexpectedly shrank in December.
Sterling fell 0.3 percent to $1.6053 at 9:42 a.m. London time after dropping to $1.6041, the weakest since Dec. 10.
U.K. 10-year bonds declined, with yields rising three basis points, or 0.03 percentage point, to 2.10 percent.
The gauge of services slid to 48.9 from 50.2 in November, Markit Economics and the Chartered Institute of Purchasing and Supply said in London today. The reading below 50 signals contraction.