The euro soared following reports that the European Central Bank (ECB) will hold an unscheduled meeting today to discuss a widespread sell -off in the government bond market.
Since the ECB gave an indication of an interest rate hike last Thursday, bond yields have risen sharply until the spread between German and Italian yields soared to a 2 -year high.
The meeting is scheduled for 5 pm today (Malaysian time).
The report has pushed the euro to trade 0.7% higher against the US dollar with a price almost hitting 1.0500 at the start of the European session, while Italian 10 -year bond yields declined and Italian stock futures rose sharply.
Earlier, the benchmark German 10 -year bond yield for the 19 -nation currency unions, had hit 1.77%, their highest level since early 2014 while Italian yields jumped 240 basis points higher, the biggest spread since early 2020.
