Gilts Advance as U.K. Says Cunliffe Will Join Bank of England

U.K. government bonds rose for a second day as the Treasury said Jon Cunliffe, a former adviser to Prime Minister David Cameron, would become deputy governor for financial stability at the Bank of England.

Two-year yields dropped toward the lowest in more than two months as European stocks declined, boosting demand for safer assets. The Bank of England’s Monetary Policy Committee led by new Governor Mark Carney meets on July 31 and Aug. 1. The pound strengthened for a third week versus the dollar before reports next week that economists said will show U.K. mortgage approvals increased in June and manufacturing expanded in July.