Many of you may be asking yourself, “what’s changed since last week with the EU bailout?” One would think there would surely be some sort of news or development concerning the exact structure of this plan, rumored to be a sovereign debt backstop of $1 trillion USD. Is there surely some plan moving forward?

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Last week was a ROUT. There’s no other way to put it. While we suspect this week will start off with some trading traction, it may not end looking much better. What is certain, is that geopolitical uncertainties in Europe look to be trumping economic data in a slow week for U.S. macro indicators. This week’s Weekly Spectrum is then more focused on the geopolitical risks surrounding the EU TARP style debt purchase program nearly $1 Trillion large, power transitions in the UK and Germany, and a few economic reports due out later in the week in the U.S.

The “bond king” of PIMCO, Bill Gross, tells Bloomberg and the world his strategy on the issue of Greek debt… “Stay away!” In the interview, Gross explains recent moves of the Absolute Return PIMCO fund, including record low holdings of Long Term U.S. debt and increased holdings of “core” European bonds, most notably Germany. Having
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