Reuters reports that ECB Vice President Luis de Guindos said that euro zone governments, households and companies can still borrow cheaply despite a recent rise in yields, but the European Central Bank should be cautious in removing support for the debt market.

De Guindos said the present level of bond yields was still conducive to "favourable" financing conditions - ECB-speak for a level of borrowing costs it is comfortable with.

"The present level of yields permits that the financing conditions of the governments as well as... for households and corporates are favourable," de Guindos told a news conference.

But he repeated his call for erring on the side of caution when it comes to withdrawing monetary stimulus.

"It has to be gradual, it has to be very prudent, it has to be in parallel with the evolution of the recovery of the economy," de Guindos said.