41. Comments by Bundesbank officials suggesting German rates might not fall as soon as some analysts expect also weighed on the dollar, analysts said. 42. Concern German rates will rise pushed up bond yields across Europe. 43. Concern that German rates will fall grew after Germany released a spate of weak economic reports this month. 44. Concerns about a possible end to German rate cuts should keep the market muzzled in the coming weeks. 45. Earlier this week, the Bundesbank left German rates unchanged at record low levels, pushing widely expected reductions in borrowing costs further into the future. 46. Economic reports yesterday dashed expectations for lower German rates. 47. European bonds were mainly lower amid tension in Italy, talk of delays in German rate cuts and weaker Treasuries. 48. Expectations that German rates may head higher came from a report that plant and machinery orders surged in September. 49. Expectations that German rates will decline helped to push bond yields lower across Europe. 50. Expectations for lower German rates boost the dollar, as relatively higher U.S. rates would make dollar deposits more attractive. |