With German bund yields already moving higher due to the belief that their financial responsibility for some of their EU friends will only continue to grow, a new record high in the German IFO business confidence figure has the bund yield rising to the highest since April after touching the most since Feb earlier in the morning. Also, French business confidence rose to the highest since Mar ’08 with both countries, due to large exposure to Asia, remaining immune to the financial issues of other European countries The bonds of Italy, Spain, Greece and Portugal are rallying on the possibility of the EFSF being used to buy back existing debt. While the Shanghai index bounced back somewhat after sharp selling over the past week, other Asian markets got hit with Indonesia falling to a 4 month low, Thailand to a 5 week low and Japan, South Korea, Singapore and Malaysia falling to 3 week lows.
