71.   German bunds paced the advance as comments by a Bundesbank official kept alive hopes of another cut in German rates.

72.   German rate cuts will boost the dollar by making mark-denominated deposits less attractive, they said.

73.   German rates, which act as a base for money market rates throughout Europe, have been left at historic lows for the last six months.

74.   German rates typically set a floor beneath most other European rates so a cut in German rates allowed the Netherlands, Belgium, Austria and Denmark to follow suit.

75.   Further clues on whether German rates may be lifted will come from a report on money supply that could come as early as next Friday.

76.   German economic experts are lining up to downgrade their growth forecasts, making the question of another cut in German rates one of when and not if.

77.   German rate cut hopes were further eroded by an upward revision in June factory orders.

78.   German short-dated notes also lagged the gains of U.S. notes, a sign the market sees less room for the Bundesbank to reduce German rates again.

79.   He expects German rates to rise in the next six months.

80.   He said German rates will likely remain unchanged until late March as the central bank monitors the growth of money supply.