Pound Falls for Second Day Versus Dollar Before Gilt Sale
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The pound rose for the first time in four days against the euro after a report showed the euro-area recession deepened last quarter, spurring demand for alternatives to European assets.
Sterling strengthened from near the weakest since October 2011 against the 17-nation currency as gross domestic product in Germany and France also declined. U.K. five-year government bonds rose after the Treasury sold 4 billion pounds ($6.2 billion) of the securities as yields at the highest in five weeks lured investors. The difference in yields between five-and 10-year gilts widened to the most since December 2011.