BLBG:Pound Rises Versus Euro, Trimming Two-Day Decline, After Italian Auction
The pound rose against the euro, snapping a two-day decline after Italian borrowing costs rose at an auction, spurring demand for U.K. assets as a haven.
Gilts erased a decline after the Rome-based Treasury said it sold 3.08 billion euros ($4.4 billion) in bonds due in 2014 to yield 4.93 percent, up from 4.68 percent at the last auction of the same securities on Sept. Italy also sold securities due in 2017, 2019 and 2022. U.K. stocks fell, reversing an advance.
Sterling climbed 0.4 percent to 87.82 pence per euro at 11:25 a.m. London time. It was little changed at $1.6108 and 122.18 yen.
The pound has weakened 1.2 percent in the past month against a basket of nine developed-market peers, extending its decline over the past year to 4.7 percent, according to Bloomberg Correlation-Weighted Currency Indexes.
To contact the reporters on this story: Keith Jenkins in London at Kjenkins3@bloomberg.net; Garth Theunissen in London gtheunissen@bloomberg.net
To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net
