Subterranean euro-sick blues

The first week of 2011 emerged with the same themes dominating the headlines that drove the markets for much of 2010. In the US, extraordinary monetary and fiscal measures taken to stimulate the economy started to pay off, as the bond market continues to price in a normalisation of the term structure. In Europe, however, plenty of problems still persist, and the on-going sovereign debt crisis (especially the outlook for Spain and Portugal) is likely to remain a key driver in early 2011.  

In the

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