Weaker than expected US growth figures failed to give UK government bonds a sustained lift, as new home sales in America hit record levels.
Gilts edged lower across most maturities in an uninspiring session.
US GDP rose by 1.1 per cent in the fourth quarter of the year, a long way short of the 2.8 per cent growth expected by analysts. The figure compared with 4.1 per cent growth in the third quarter.
That prompted some mid-session buying, but early gains were given up as US government figures showed a 2.9 per cent rise in new home sales to 1.27 million in December. Signs of life in the housing market, seen as an indicator of the health of consumer confidence, reassured analysts and prompted selling of gilts, amid rising equity markets, both here and in the US.
The March gilt future gave up 12p at £113.73. Treasury 4¾ per cent 2010 ended 5p higher at £101.79 while Treasury 6 per cent 2028 dipped 1p to £130.37.