The euro rallied and the yield on the 2-year German bund rose in reaction to a Reuters report that the European Central Bank may kick off its rate hike campaign with a 50-basis point increase. The report cited two unnamed sources with direct knowledge of the discussion. The ECB previously has guided for a rise of a quarter-point at its Thursday meeting. The euro
rose to $1.0236 from $1.0145 on Monday, and the yield on the 2-year German bund
rose 10 basis points to 0.61%.