0744 GMT - The sharp selloff in French government bonds could lead to an even weaker euro, ING's Chris Turner says in a note. Investors assume that any European Central Bank action fix to the bond market selloff could involve much less or no further policy tightening, which would weigh on euro, he says. In an extreme case, the ECB could use its Transmission Protection Instrument to buy bonds, which would be very euro negative, he says. The euro rises 0.2% to $1.1262 on reduced U.S. rate-rise expectations but remains near Thursday's 16-month low of $1.1214, LSEG data show. ING sees the risk of it reaching $1.10. The 10-year German-French yield spread rises to its highest since 2012 at 149.17 basis points, LSEG data show.
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