Italy is still a MAJOR concern for the eurozone; Italian bond spreads relative to Germany are off their highs (327 basis points) and down to 281 basis points (by no means out of the woods). Note the tacit correlation between euro and spread direction. Below, the pair is shown as USD/EUR so you can see the visual correlation better; i.e. as the spread widens the euro weakens against the US dollar and vice versa. Spread bet anyone?