Berlusconi denies resignation rumours
Italian Prime Minister Silvio Berlusconi on Monday denied rumours he was on the verge of resigning, as Italy's bond market came under heavy pressure, the national news agency ANSA reported.
"Rumours of my resignation are baseless and I do not understand how they started circulating," Berlusconi was quoted as telling his aides.
Fabrizio Cicchitto, leader of Berlusconi's People of Freedom party in parliament, said: "I spoke to prime minister Berlusconi a short time ago and he told me that the rumours about his resignation are without foundation."
Stock markets earlier rallied on rumours that Berlusconi's resignation was imminent, while long-term borrowing rates hit record highs.
The yield on 10-year government bonds reached 6.596 percent on Monday compared to 6.371 percent late on Friday, indicating a peak in investor fears.
