The pound was little changed versus the dollar as the U.K. Debt Management Office prepares to auction 1 billion pounds ($1.6 billion) of inflation-linked securities due 2029. Sterling was also little changed against the euro. The yield on U.K. 10-year inflation-linked gilts tumbled to minus 1.08 percent yesterday, the lowest level since Bloomberg started collecting the data in 1992. The pound traded at $1.5990 at 7:53 a.m. London time, after dropping as low as $1.5976 yesterday, the least since Nov. 28. Sterling was at 83.10 pence per euro. It depreciated to 83.26 pence on Jan. 14, the weakest since April 3. The pound has dropped 1.6 percent this year, the third worst performance after the Japanese yen and Swiss franc according to Bloomberg Correlation-Weighted Indexes which track 10 developed-market currencies. The euro advanced 1 percent and the dollar was little changed. Gilts handed investors a loss of 1.2 percent this month through yesterday, according to indexes compiled by Bloomberg and the European Federation of Financial Analysts Societies. German bonds also dropped 1.2 percent and Treasuries fell 0.2 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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