The pound extended a decline against the dollar and weakened versus the euro after a report showed U.K. inflation slowed more than economists forecast in April to a seven-month low.
The pound weakened against the dollar and the euro, snapping yesterday’s gains, before a government report that economists predict will show U.K. consumer-price inflation slowed in April.
Germany’s government bonds were little changed as a report showed a measure of inflation in the euro area’s biggest economy slowed last month.
Credit downgrades, recession and President Francois Hollande’s gaping budget shortfall have done little to prevent French bonds from outshining gold.
The pound strengthened from a six- week low against the dollar after an industry report showed U.K. home sellers raised asking prices to a record, adding to optimism Britain’s economy is improving.
Germany’s two-year notes declined for the first time in four days amid signs the global economic recovery is gathering pace, damping investor demand for the safest government assets.
Italy’s bonds rose for a fourth day as a government report showed the nation’s industrial orders increased more than economists predicted, adding to optimism the region’s economy is recovering.
The pound fell for a second week versus the dollar as speculation the Federal Reserve is moving closer to ending its program of asset purchases boosted the U.S. currency against its major peers.
German government bonds rose, with 10-year yields dropping the most in six weeks, as reports showing the euro-area economy contracted and inflation slowed underpinned demand for the region’s safest securities.
The pound fell against the dollar, extending a second weekly decline, as speculation the Federal Reserve is moving closer to ending stimulus boosted demand for the U.S. currency.