Bloomberg points out that credit default swaps have fallen to their lowest levels in a year in Both Germany and France today and that Spain has fallen to a 3.5 month low.

EUR/USD, and risk in general, are not getting much of a lift from the lessening of sovereign stress, trading back below 1.2300.

It costs 56 bp to insure against a German default, 129.5 bp against a French default, and 477 bp to insure against a Spanish default. The US comes in at 41 bp, for comparative purposes.