Dollar, Treasuries Fall on U.S. Debt Outlook

U.S. Speaker of the House John Boehner said separately he’s made a “sincere effort” to work with Obama on a plan to raise the debt limit, adding the president created the “crisis atmosphere” surrounding the issue. Photographer: Joshua Roberts/Bloomberg
The dollar sank to a record low versus the Swiss franc and Treasuries fell as President Barack Obama and House Speaker John Boehner struggled to agree on the U.S. debt limit, Bloomberg reports.

The U.S. currency slid 0.7 percent against the Swiss franc as of 4:03 p.m. in Tokyo and weakened below 78 yen for the first time since March. Ten-year Treasury yields advanced three basis points. The MSCI Asia Pacific Index jumped 1 percent, the Stoxx Europe 600 Index lost 0.2 percent, while Standard & Poor’s 500 Index futures rose 0.4 percent. Gold traded near a record high, and copper snapped a four-day loss.

“From the two speeches we’ve heard, it doesn’t seem like they’re on the doorstep of coming up with a deal,” Stephen Halmarick, the Sydney-based head of investment markets research at Colonial First State Global Asset Management, which oversees about $150 billion, said in a Bloomberg Television interview. “Markets will remain fairly nervous.”

There's more at http://www.bloomberg.com/news/2011-07-26/asia-stocks-gain-u-s-futures-oil-fall-before-obama-speech-on-debt-limit.html