LONDON Tue Oct 21, 2014 6:00am EDT
LONDON Oct 21 (Reuters) - The euro fell and German Bund yields rose on Tuesday after several sources told Reuters the European Central Bank was considering buying corporate bonds on the secondary market.
The ECB may decide on the matter as soon as December with a view to starting purchases early next year, the sources said.
The euro sank half a percent to the day's low of $1.27645 after publication of the story, which dealers read as a sign the ECB was ready to do more to flood the market with euros and get inflation and growth going. It then settled to trade at $1.2774, down 0.2 percent on the day.
Bund yields rose 2.5 basis points to 0.876 percent, having traded as low as 0.824 percent. (Reporting by London markets team; Writing by Marius Zaharia, editing by Nigel Stephenson)
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