Gilts Rally as U.K. Seen Shielded From Euro, U.S. Debt Crises

U.K. 10-year gilts rose and the pound gained versus the euro on bets the U.K. will remain insulated from the fiscal crises roiling the U.S. and the euro region.

Sterling advanced against half of its 16 major peers, climbing most against New Zealand’s dollar. The European Central Bank bought Spanish and Italian debt today, driving down the nations’ surging bond yields in a bid to stem the sovereign-debt crisis. The pound fell against the dollar after touching the highest level versus the greenback since June 1 following Standard & Poor’s lowering of the U.S. credit rating.