Ιncreasing interest rates appear to pose little risk to financial stability at present. The basic reason is simple: Monetary policy normalisation, which comes as a reaction to the ‘normalisation’ of the economy, should not lead to a deterioration of the creditworthiness of most debtors. The end of the bond-buying programme of the ECB, per se, should not pose a threat to financial stability. It has already been anticipated in the markets, and the public sector purchase programme (PSPP) seems to have had only a minor and temporary impact on yield spreads within the euro area. The remaining risks to the stability of national government bond markets appear to be mainly political.