LONDON: British gilt futures pared losses on Thursday after data showed activity in Britain's services sector slowed more quickly than epxected.
The Markit/CIPS services purchasing managers' index (PMI) hit a three-month low of 57.7 in June, down from 58.6 in May and below a consensus forecast of 58.3 in a Reuters survey.
Gilt futures were down 15 ticks on the day at 109.07 having stood around 108.99 before the data.
The premium 10-year British yields offer over their German counterparts tightened one basis point to 145.5 basis point, but was not far from 147.6 hit on Wednesday - its highest since 1997.
Sterling briefly touched a two-day low against the dollar after the data, down more than 20 ticks, before recovering to stand 10 pips lower against the dollar, steadying after surging to an almost six-year high a day earlier.
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