By Anchalee Worrachate June 30 (Bloomberg) -- The British pound declined against the euro and government bonds advanced amid concern the economic recovery is stalling. The pound slipped against all but one of its 16 most active counterparts as a report show U.K. consumer confidence fell to the lowest level in six months in May. Data from the Conference Board yesterday showed its U.S. confidence index in June slumped to 52.9, lower than all forecasts in a Bloomberg Survey. The pound advanced 9 percent against the euro in the second quarter. “The fundamentals in the U.K. are still weak,” said Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London. “Our concern is that the pound’s recent strength may increase the risk of a double-dip scenario.” The pound weakened to 81.25 pence per euro as of 9:26 a.m. in London. It slipped 0.1 percent to $1.5056 and was little changed at 133.47 yen. Sterling declined 1 percent against its global peers this year, according to Bloomberg Correlation- Weighted Currency Indices. An index of sentiment fell to minus 19 from minus 18 in May, market researcher GfK NOP said in an e-mailed statement today in London. A measure of consumers’ optimism on the economy over the next 12 months dropped to minus 12 from minus 8. The 10-year gilt yield fell one basis points to 3.37 percent. The 4.75 percent security maturing in March 2020 rose 0.12, or 1.2 pounds per 1,000-pound face amount, to 111.34. Two- year note yields fell two basis points to 0.76 percent. --Editors: David Clarke, To contact the reporter on this story: Anchalee Worrachate in London at aworrachate@bloomberg.net To contact the editor responsible for this story: Daniel Tilles at dtilles@bloomberg.net

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