The US dollar was in a trading range during the week, but it is still losing ground because 46 cents of every dollar spent is borrowed and the treasury auctions are too big for markets to absorb. However, the demand for Treasury paper this week was very strong, as a result of refunding auctions, making market interest rates decline. The yield on the 10-year Treasury note is now at 3.50%, down from 3.79% a week ago.

Stocks in the financial sector continue to lead the recovery, while many banks are still conducting secondary stock offerings to repay their TARP money. The recovery might be premature since the Federal Deposit Insurance Company announced that the program designed to encourage investors to buy toxic assets from financial companies was put on hold. Another important subject for participants on the World Top Investors this week is the approval by the US House of Representatives of the IMF gold sales. Let’s see how well the IMF will sell its gold.