we saw it in the PPI number -- and it is not going away in the CPI, but it is not so inflammatory to cause great concern and of course the Fed is tightening," said Kurt Karl, head of economic research at Swiss Re in New York said. Comparable 10-year European government bonds yielded 3.674 percent against 3.703 percent. Yields on 30-year government bonds rose to their highest levels in about 6 weeks after France said it will issue 6 billion euros of its new 50-year government bond. U.S. crude oil's surge to 16-week highs above $51 a barrel had earlier pressured European shares, despite the dollar's bounce against the euro after South Korea offered reassurance about its foreign reserves strategy. The dollar's recovery, though, was not enough to put a floor under prices of Europe's export and currency-sensitive shares, which extended Tuesday's falls. A weaker-than-expected reading for German business confidence added to the pressure on European shares after the Ifo research institute said its business climate and business expectations indices both fell in February, contrary to forecasts. --More 1801 Local Time 1501 GMT
