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LTRO sparkle starting to fade

Last week brought the strongest signs yet that the post-LTRO bout of optimism is starting to wear off. Hopes that the ECB’s operations would drive a pick-up in the euro-zone economy were dealt a blow by the release of March’s flash PMI surveys, while the further rise in Spanish government bond yields provided a warning that the ECB’s cash has not addressed the fiscal pressures facing a number of euro-zone governments.

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