Gilts Advance as Demand Rises at 30-Year Sale; Pound Strengthens
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U.K. government bonds rose, with 10-year yields dropping the most in six weeks, after demand increased at a 2.5 billion pound ($3.83 billion) auction of 30-year securities.
Benchmark gilts snapped a two-day decline after U.S. reports showed consumer prices dropped for a second month in April and claims for jobless benefits increased, enhancing demand for fixed-income assets. Investors bid for twice the amount of 30-year securities the U.K. Treasury sold today, up from 1.69 times at the previous auction in April. The pound strengthened for a second day against the dollar.