The pound dropped to the lowest against dollar in 2 1/2 years after U.S. payrolls increased more than forecast in February. It fell 0.6 percent to $1.4927 as of 1:44 p.m. in London after falling to $1.4885, the least since July 1, 2010.
Gilts dropped, pushing 10-year yields up six basis points, or 0.06 percentage point, to 2.07 percent.
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