LONDON, July 19 (Reuters) - The euro rose to its highest in almost two weeks and government bond yields in the euro area jumped on Tuesday after a source-based report that the European Central Bank would discuss whether to raise rates by 25 or 50 points at Thursday's meeting.
The euro jumped to as high as $1.0230 EUR=EBS and was last up 0.7% on the day.
Euro zone bond yields were broadly higher, with two-year German yields last up 5 bps on the day at 0.56%. DE2YT=RR
The ECB has flagged a hike of 25 bps at its July meeting to tame inflation.
According to the source-based story published by Reuters, policymakers were also homing in on a deal to provide help for indebted countries like Italy on bond markets if they stick to European Commission rules on reforms and budget discipline.
