Dollar Falls to Record Low Versus Euro on Concern Subprime Losses to Mount

(Bloomberg) -- The dollar fell to a record low
versus the euro and headed for a sixth straight weekly drop as
concern increased that losses in subprime mortgages will worsen
a slowdown in U.S. housing and curb economic growth.

The currency also tumbled versus the yen as investors
exited riskier bets. Federal Reserve Chairman Ben S. Bernanke
said yesterday there will be ``significant financial losses'' on
mortgages given to people with poor credit histories.


Read more at Bloomberg Currencies News

Treasuries Advance on Speculation Subprime Losses to Damp Economic Growth

(Bloomberg) -- Treasuries climbed on speculation
rising subprime mortgage defaults will worsen a slowdown in the
housing market and curb economic growth.

U.S. 10-year notes headed for a second weekly gain as funds
including two at Bear Stearns Cos. incurred losses on securities
backed by home loans. Federal Reserve Chairman Ben S. Bernanke
said losses on investments linked to mortgages given to people
with poor credit histories may total $100 billion. The risk of
owning European corporate bonds rose to a two-year high today.


Read more at Bloomberg Bonds News

Gold, Silver Gain as Dollar's Slump Boosts Metals' Appeal as Investment

(Bloomberg) -- Gold and silver gained for a second
day in New York on speculation a decline in the value of the
dollar will boost the appeal of precious metals as alternative
investments.

Gold generally moves in the opposite direction of the
dollar. The U.S. currency fell to a record against the euro
yesterday on speculation that interest rates will rise faster in
Europe after Federal Reserve Chairman Ben S. Bernanke scaled
back forecasts for U.S. economic growth.


Read more at Bloomberg Commodities News

Dollar Slumps to Record Low Against Euro on Bear Stearns Subprime Losses

(Bloomberg) -- The dollar dropped to a record low
against the euro after Bear Stearns Cos. reported hedge fund
losses, fueling speculation investors will spurn U.S. assets as
the economy slows.

The currency also fell against the yen as investors scaled
back carry trades, where they buy higher-yielding securities with
money borrowed in Japan. Federal Reserve Chairman Ben S. Bernanke
may be asked about financial industry losses caused by mortgage
defaults when he testifies before Congress today.


Read more at Bloomberg Currencies News

Treasuries Rise on Subprime Mortgage Crisis, Outlook for Economic Slowdown

(Bloomberg) -- Treasuries rose as the subprime
mortgage crisis sent investors to the safety of U.S. government
debt and raised concern that housing weakness will slow the
world's largest economy.

Benchmark 10-year note yields dropped this week after
Standard & Poor's and Moody's Investors Service warned about the
credit quality of subprime mortgages. Federal Reserve Chairman
Ben S. Bernanke may comment on housing during congressional
testimony next week.


Read more at Bloomberg Bonds News

U.S. Notes Fall as Fed Chairman Bernanke May Reinforce Inflation Concern

(Bloomberg) -- U.S. Treasury notes fell on concern
Federal Reserve Chairman Ben S. Bernanke will say inflation is
still a risk to the economy when he speaks later today.

Notes have declined this month because of speculation the
Fed's concern about prices for goods and services will keep
policy makers from cutting their benchmark interest rate from a
six year-high. Treasuries dropped 0.4 percent in July, including
reinvested interest, adding to losses in May and June, according
to Merrill Lynch & Co. data.


Read more at Bloomberg Bonds News