The pound advanced against the dollar after a report showed the U.K. services sector unexpectedly expanded last month.
Sterling climbed 0.3 percent to $1.5804 at 9:33 a.m. London time and was little changed at 85.69 pence per euro.
Gilts fell, pushing the yield on the 10-year security up six basis points, or 0.06 percentage point, to 2.14 percent.
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