Euro-area leaders redoubled efforts to end the 21-monthsovereign bond crisis as they erected a firewall around Spain andItaly and risked temporary default to lighten Greece's debtburden.

After eight hours of talks in Brussels, leaders announced 159billion euros ($229 billion) of new aid for Greece late yesterdayand cajoled bondholders into footing part of the bill. They alsoempowered their 440-billion euro rescue fund to buy debt acrossstressed euro nations after a market rout last week sparked concernthe crisis was spreading. The fund can also aid troubled banks andoffer credit-lines to repel speculators.

Greek, Spanish and Italian bonds rose after officials drewconcessions from Germany, the European Central Bank and investorsfor a twin-track strategy to support Greece and ensure its woesdon't spread. The summit is the latest in a running-battle toresolve the crisis amid calls this week for tougher action fromU.S. President Barack Obama and the International MonetaryFund.

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