European Central Bank (ECB) is set to hold ad hoc Governing Council meeting on Wednesday to discuss the recent sell-off in government bond markets, Reuters reported, citing a an ECB spokesperson.

The spokesperson said: "The Governing Council will have an ad-hoc meeting on Wednesday to discuss current market conditions.”

This comes after the spread between the yields of Germany and embattled southern nations, particularly Italy, soared to its highest in over two years, amid increasing concerns over fragmentation.

Market reaction

The shared currency received a fresh boost from the above headlines, with EUR/USD climbing further towards 1.0500.

The pair was last seen trading at 1.0470, adding 0.56% on the day.

EUR/USD 15-minutes chart