The pound extended an advance against the euro as a report showed U.K. services growth unexpectedly accelerated in March. Sterling climbed 0.3 percent to 82.91 pence per euro at 9:36 a.m. London time. It was little changed at $1.5904, after earlier weakening as much as 0.3 percent. The 10-year gilt yield rose three basis points to 2.20 percent. The two-year note yield also advanced three basis points to 0.44 percent. A gauge of services activity based on a survey of purchasing managers rose to 55.3 from 53.8 in February, Markit Economics and the Chartered Institute of Purchasing and Supply said. The median forecast of 29 economists in a Bloomberg News survey was for a reading of 53.4. A measure above 50 indicates expansion. To contact the reporter on this story: Lucy Meakin in London at lmeakin1@bloomberg.net To contact the editor responsible for this story: Paul Dobson at pdobson2@bloomberg.net

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