The pound weakened against the dollar after a government report showed the U.K. economy grew less than initially estimated in the year through June.
U.K. government bonds held a three-day advance, with 10-year yields dropping to the lowest level this month. Britain’s gross domestic product increased 1.3 percent in the 12 months through June, the Office for National Statistics said today, compared with an initial reading of 1.5 percent. In the second quarter, the economy expanded 0.7 percent, in line with an earlier estimate released on Aug. 23.
The pound dropped 0.3 percent to $1.6036 at 9:42 a.m. London time after climbing to $1.6163 on Sept. 18, the highest since Jan. 11. Sterling weakened 0.1 percent to 84.22 pence per euro after appreciating to 83.53 pence on Sept. 18, the strongest since Jan. 17.
The pound has risen 6.4 percent in the past six months, the best performer among 10 developed-nation currencies tracked by Bloomberg Correlation-Weighted Indexes. The dollar weakened 0.1 percent, while the euro gained 5.5 percent.
The benchmark 10-year gilt yield was little changed at 2.74 percent, the lowest level since Aug. 28. The price of the 2.25 percent bond due in September 2023 was at 95.74.
U.K. gilts lost 3.4 percent this year through yesterday, according to Bloomberg World Bond Indexes. German securities dropped 1.7 percent and Treasuries fell 2.4 percent.
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