Sterling, UK government bonds and corporate debt fell after Chancellor of the Exchequer Alistair Darling said Britain’s recession is worsening.
The yen rose against all 16 most-traded currencies.
The UK currency weakened versus the yen, dollar, euro and Swiss franc. Yields on 10-year gilts rose eight basis points to 3.39 per cent.
The yen advanced after Japan posted an unexpected trade surplus in March.
