LONDON—The euro jumped after the European Central Bank’s governing council said it would hold an unscheduled meeting on Wednesday to discuss the recent sell-off in government bond markets, hours ahead of a closely-watched meeting of the U.S Federal Reserve.
The European common currency rose as to as high as $1.0508 following the announcement, which comes after the spread between government bond yields from Germany and more indebted southern nations, particularly Italy, soared to more than two year highs.
Italy’s 10-year bond yield slid 22 basis points (bps) to 4.0 percent after the announcement, down from eight-year highs. It was set for its biggest daily fall since March 1….