The pound dropped for a sixth straight day against the euro, the longest losing streak since October, as a government report showed U.K. manufacturing production unexpectedly declined in November. Sterling fell to an eight-month low versus the 17-member common currency. It slid against all but two of 16 major peers tracked by Bloomberg after data showed factory output declined 0.3 percent from October, when it dropped 1.3 percent. The median forecast of 24 economists in a Bloomberg News survey was for a 0.5 percent gain. Total industrial production rose 0.3 percent, also less than forecast. Gilts advanced. The pound depreciated 0.4 percent to 82.37 pence per euro at 10:21 a.m. London time, after falling to 82.43 pence, the weakest level since April 18. Sterling slipped 0.4 percent to $1.6110. The pound has fallen 1.2 percent since the start of 2013, the second-worst performer of 10 developed-market currencies tracked by Bloomberg Correlation-Weighted Indexes. The yen dropped 2.9 percent and the dollar lost 0.2 percent, while the euro gained 0.4 percent. The 10-year gilt yield fell three basis points, or 0.03 percentage point, to 2.07 percent, after climbing seven basis points yesterday. The 1.75 percent bond due in September 2022 rose 0.275, or 2.75 pounds per 1,000-pound face amount, to 97.245. Gilts handed investors a loss of 1.9 percent this month through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bonds dropped 1.5 percent and Treasuries fell 0.6 percent. 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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