The euro rose to its highest level in nearly two weeks, and euro zone government bond yields jumped on Tuesday after a source said the European Central Bank would discuss a 25 or 50 bp rate hike at its Thursday meeting.

The euro jumped to $1.0248 and rose 0.95% for the last time on the day.

Eurozone bond yields rose broadly, with two-year German bond yields up 5bp. per day to 0.56%.

The ECB previously announced a 25 bp rate hike. at its July meeting to curb inflation.

Politicians have also set their sights on a deal to bail out indebted countries like Italy in bond markets if they adhere to European Commission rules on reform and fiscal discipline, according to information based on sources released by Reuters.