Sept. 11 -- The pound dropped in London after a report showed the U.K.'s trade deficit widened more than forecast in July.
The deficit was 7.1 billion pounds ($14.4 billion), compared with 6.5 billion pounds in July, the Office for National Statistics said today. Economists forecast a 6.4 billion-pound gap, according to the median of 26 estimates in a Bloomberg survey.
The pound fell to $2.0252 by 9:34 a.m. in London, from $2.0277 late yesterday. It was also at 68.09 pence per euro from 68.07 pence.
The yield on the 10-year gilt gained 1 basis point to 4.90 percent.
The price of the 4 percent security due September 2016, which moves inversely to the yield, fell 0.06, or 60 pence per 1,000-pound ($2,028) face amount, to 93.46. The yield on the two- year note was little changed at 5.12 percent.
By Gavin Finch
(Bloomberg)
