The economy is "turning a corner", Chancellor George Osborne is expected to say in an upbeat speech later today.
The US economy expanded at a much greater rate than expected, according to latest figures released this afternoon, helping push benchmark US treasury yields back up to 2.82%.
The UK economy grew by 0.7% in the second quarter of 2013, a higher than previously estimated figure, according to latest figures from the Office for National Statistics.
Analysts are upgrading their UK growth forecasts ahead of a potential upwards revision to Q2 figures this Friday.
The eurozone has come out of recession, recording GDP growth of 0.3% in the second quarter to bring a record 18-month contraction to an end.
European fund managers have rotated out of blue-chip defensives in favour of more economically sensitive cyclical stocks as they call the end of the sovereign debt crisis.