Pound Rises as Retail Sales Beat Forecast, Budget Deficit Drops

The pound rose against the euro after a government report showed British retail sales growth unexpectedly accelerated in July.

The two-year gilt yield fell to a record low and 10-year yields dropped below 3 percent for the first time since March last year as a separate report showed the government’s net borrowing dropped. Sterling stayed higher against the euro after a report showed the number of people claiming unemployment benefits in the U.S. unexpectedly rose.