Brief Update on Europe

After so much bad news from Europe in recent weeks (months, ...), there has been some improvements in the market for sovereign debt recently.  The significant decline in yields on Spanish and Italian bonds (see below) reflects some improvement in risk premiums and less short-term fear about the eurozone.  Obviously, the European Sovereign Debt Crisis is still alive and well, but policymakers have bought more time to develop a "solution" to the crisis.