Pound Drops Below $1.50 as Manufacturing Shrinks; Gilts Advance

The pound weakened through $1.50 for the first time since since July 2010 after an industry report showed U.K. manufacturing unexpectedly shrank in February.

Sterling dropped for the third time in four days versus the euro as the Bank of England said mortgage approvals declined in January, signaling the housing market is struggling to recover. The pound has dropped the most of any major currency this year as speculation the central bank will need to add more monetary support to the faltering economy damped demand. U.K. government bonds rose, with 10-year yields set for their biggest weekly drop since November 2011.