Dollar May Resume Drop Against Euro, Pound as U.S. Housing Slump Deepens

(Bloomberg) -- The dollar may reach a record low
against the euro on evidence the U.S. housing sector is heading
into a deeper slump.

The currency may also weaken versus the pound on tomorrow's
National Association of Realtors report forecast by economists
to show U.S. existing-home sales fell last month to the lowest
in four years. Federal Reserve Chairman Ben S. Bernanke
testified before Congress last week that there will be
``significant'' losses on loans to homeowners with poor credit.


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Treasuries Are Little Changed After Bear Stearns Tells of Subprime Losses

(Bloomberg) -- Treasuries were little changed
after Bear Stearns Cos. told investors in two funds they will
get little if any money back because of losses on securities
used to bet on subprime mortgages.

U.S. government debt pared gains before Federal Reserve
Chairman Ben S. Bernanke testifies before Congress today on the
state of the economy and interest-rate policy and the Labor
Department delivers its report on consumer inflation.


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Dollar Near Record Low Versus Euro Before Reports on Housing, Inflation

(Bloomberg) -- The dollar traded near a record low
versus the euro before U.S. government reports this week that
may show slowing consumer prices and a decline in home building.

The dollar dropped 1.1 percent against the euro last week
on concern that weakness in the U.S. housing market will curb
growth and force the Federal Reserve to lower interest rates.
Fed Chairman Ben S. Bernanke may address the housing slump in
his semi-annual testimony before the House Financial Services
Committee on July 18.


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Treasuries Rise Before Reports on Consumer Price Inflation, Housing Starts

(Bloomberg) -- U.S. Treasuries rose before
government reports this week that economists said will show
consumer prices slowed in June and home building declined.

Notes have risen in the past week as losses tied to subprime
mortgages fed speculation that a cooling in the U.S. housing
market will hurt the world's biggest economy. Federal Reserve
Chairman Ben S. Bernanke may speak about housing during
congressional testimony July 18 and 19.


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U.S. 10-Year Treasury Yield Is Near Two-Week High Before Bernanke Speech

(Bloomberg) -- U.S. 10-year Treasury yields held
near their highest in two weeks on speculation Federal Reserve
Chairman Ben S. Bernanke will say inflation is still a concern
when he speaks tomorrow.

Inflation expectations among traders rose for a third day.
Ten-year notes yielded 2.41 percentage points more than
inflation-protected securities, versus 2.39 percentage points a
week ago. The difference represents the rate of inflation
investors expect for the coming decade.


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U.S. Stocks Retreat on Bernanke Comments; Bed Bath & Beyond Leads Drop

(Bloomberg) -- U.S. stocks dropped after Federal
Reserve Chairman Ben S. Bernanke said the housing slump may
hinder the economy longer than previously expected.

A gauge of retailers declined the most among 24 industries
in the Standard & Poor's 500 Index after Bed Bath & Beyond, the
largest U.S. home-furnishings chain, said falling home sales
hurt its earnings. Exxon Mobil Corp. led energy producers to the
biggest drop among 10 groups after oil prices declined.


Read more at Bloomberg Stocks News