The Irish bailout has been agreed and, to my surprise, the Germans have backtracked on their demand that bondholders should share the pain of a sovereign bailout after 2013. This is what kicked off the current little crisis but, as I said a couple of weeks ago, it was a catalyst for the market to react to a portmanteau of worries (which made the problem hard to pin down).
Update: It seems loss-sharing has been downgraded from a requirement to a possibility. Is this the kind of shock-and-awe news that seemed needed last week to turn the crisis around? At the moment I tend to think not.
Update2: Mohamed El-Erian agrees.