31. Bundesbank President Hans Tietmeyer fueled German rate cut expectations last week when he said the dollar was too weak against the mark. 32. Bundesbank President Hans Tietmeyer this weekend suggested there is room for a German rate cut. 33. Bundesbank Chief Economist Otmar Issing Wednesday shattered expectations for reductions in German rates. 34. Bund yields closed in on U.S. yields amid persistent optimism the bank will cut its key discount rate, the floor for German rates, soon. 35. Bundesbank council member Ernst Welteke, in an interview with Bloomberg News, refused to rule out another cut in German rates. 36. Bundesbank council member Klaus-Dieter Kuehbacher, meanwhile, said German rates will stay where they are in the foreseeable future. 37. Bunds outstripped gilts amid hopes for a German rate cut. 38. But many of them also said that the German rate cut might be the last for some time. 39. Comments by a Bundesbank official suggesting that a German rate cut might not be imminent also weighed on the dollar, analysts said. 40. Comments from central policy-makers have sent out mixed signals as to whether another German rate increase is likely before the end of the year. |