ING's Chris Turner warned a sharp sell-off in French government bonds could further weaken the euro. Investors see any ECB intervention to counter the sell-off as signaling materially reduced scope for further tightening or a halt to tightening, which would be euro-negative. In an extreme scenario the ECB could deploy its Transmission Protection Instrument (TPI) to buy bonds, a move Turner said would be very negative for the euro. LSE data show the 10-year Germany-France bond yield spread widene

ING's Chris Turner warned a sharp sell-off in French government bonds could further weaken the euro. Investors see any ECB intervention to counter the sell-off as signaling materially reduced scope for further tightening or a halt to tightening, which would be euro-negative. In an extreme scenario the ECB could deploy its Transmission Protection Instrument (TPI) to buy bonds, a move Turner said would be very negative for the euro. LSE data show the 10-year Germany-France bond yield spread widened to 149.17bps, the widest since 2012.