News in Europe focused on Cyprus and its negotiations for a €10 billion ($13 billion) rescue package from euro area countries and the International Monetary Fund. The agreement reached aims to restructure the ailing Cypriot banking system while protecting insured depositors.
The bond spreads of large European countries have risen only slightly since the Cypriot rescue was announced. Italian and Spanish spreads are currently at 323 bps and 370 bps, respectively, up about 10 bps to 20 bps since March 15.
