LONDON, June 28 (Reuters) - The euro fell and government bond yields across the bloc gave up earlier rises on Wednesday after euro zone central bank sources told Reuters the market had overinterpreted comments from ECB chief Mario Draghi.
Draghi intended to signal tolerance for a period of weaker inflation, not an imminent policy tightening, when his comments on Tuesday rattled markets, sources familiar with Draghi’s thinking said. The ECB declined to comment.
The euro fell as low as $1.1290, a cent down from earlier peaks. Germany’s 10-year bond yield - Europe’s benchmark - came off a one-month high of 0.41 percent to trade flat on the day at 0.35 percent. (Reporting by London Markets team, editing by Nigel Stephenson)