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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 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%.
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. (Reporting by Dhara Ranasinghe and Tommy Wilkes)