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U.K. Bonds Post Weekly Drop as Carney Reiterates Stance on Rates

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U.K. government bonds posted their first weekly decline since March 6 after Bank of England Governor Mark Carney reiterated that the next move in interest rates is likely to be up.

Investors had pushed back bets on higher U.K. borrowing costs amid signs the economic recovery is losing momentum and after officials emphasized the disinflationary impact of a stronger pound. U.K. bonds also tracked declines by Treasuries as demand shriveled at two U.S. note auctions to the least in five years.