Spreads in the money market have come down from a high of several hundred basis points to a level below pre-Lehman. Similarly, the spreads between European issuers have narrowed considerably. These factors indicate a significant improvement in financial conditions since the historical low in October 2008.
The panic mood has ceased, but the enhanced market stability is to a high degree the result of continued public support measures. Market conditions have still not normalised and the estimated  4  BIS Review 159/2009  government issuance need for 2010 is record high in many countries due to high redemptions and large budget deficits, cf. Chart 4.