"It is wrong to believe that Italy is on the verge of bankruptcy due to the increase in interest rates on its bonds." The statement was released by Jens Weidman, president of the Bundesbank and member of the governing council of the ECB, to the Berliner Zeitung newspaper.
Weidman has shown that he believes that Italian bond yields above 7% can be sustainable. Weidman also played down the failed outcome of last Wednesday's German Bund auction, noting that demand for German debt is still very strong. "The hard core of the eurozone is not at risk, the worrying yields of France and Austria are nothing new compared to the past".
