U.S. 10-year Treasury bonds rose 1/32 to a yield of 4.788%, as U.S. equities continued to drop. Treasuries saw the largest weekly advance in four months on investors leaving the equities market as well as speculation on a possible credit crunch.

The dollar rose to a 2-week high against the Euro and advanced the most versus the pound since March. Subprime fears have brought U.S. investors back into the currency.

Second-quarter GDP reports came in higher than expected posting a 3.4% rise versus consensus of 3.2%. This was the strongest performance since the first-quarter of 2006. Core PCE dropped from 2.4% to 1.4% compared to economist expectations of 2.0%.

The dollar also bounced against the Canadian dollar for the third straight day as investors unwound risky bets in commodity-linked currencies.

Crude oil futures rose 2.7% today after the GDP report showed higher growth, indicating fuel demand will rise.

Gold futures fell 0.4% today on speculation that the rising dollar will reduce gold's demand as an alternative investment. Copper futures rebounded 0.7% on the positive GDP report.

Soybeans gave back yesterday's gains losing 0.8%, while corn futures rose 1.4%.