The pound dropped to a more than one-year low, stocks fell and gilts extended a fourth day of losses on concern the Labour government will struggle to keep the deficit in check as borrowing costs surge. Sterling fell for a third day, sliding as much as 1% to $1.2239, the lowest since November 2023. Gilts fell sharply at the open, with the 10-year yield rising as much as 13 basis points to 4.92%.