Seemingly amid the ongoing pressures in the market, the EU leaders at least managed to acquire one main goal and supported the area's bonds to rise, easing some of the borrowing burdens haunting nations.

Following the European Union leaders' decision to expand the scope of the EFSF and ease the terms on the Greek bailout the market responded positively, or at least for now! Spanish, Greek and Italian 10-year bonds recovered some loses and moved higher while yields drop easing the strain on the nations to access capital markets for liquidity after their borrowing costs surged adding more pressures on the nations to pursue their fiscal targets.

We can see the effect on the bonds and that is surely a positive acceptance from the market for the measures adopted. Ireland for instance which was denied any change on its bailout as they refused to raise corporate tax which kept their bonds under pressure today.

The leaders were supposed to reach an agreement by March 25 and as the clock ticked they surprised the market with an early March 12 decision. They expanded the scope of operations for the European Financial Stability Facility (EFSF), where the 440 billion euro bailout fund will be used to its full extent to support nations as well as be allowed to buy bonds directly from governments, after submitting to collateral rules of course, which is still an expansion from the previously allowed size of the fund at 250 billion. The primary market purchases allowed will be strictly tied in return for austerity commitments.

The leaders also agreed to ease the terms on Greece which was under the spot once again in the recent period as speculation grew over the nation's inevitable default. They made a provisional agreement to lower the interest rate on the Greek loans of 5.0% by 100 bp and extended the repayment period to seven-and-a-half years from three, a move which Greek Prime Minister George Papandreou estimates would save the nation about 6 billion euros over the life of the loan.