Equity Indices

Asia shares almost recorded a sixth session of gains as investors strove to stay optimistic on the chance of a Greek debt deal,  Japan's Nikkei  clearing a peak from 2000 to reach ground last trod in late 1996.  MSCI's index of Asia-Pacific shares outside Japan  also edged higher.

Interest Rates

Benchmark Bond Yields

The Treasury on Tuesday accepted Euro 20.5 million in 91-day Treasury Bills at an average yield of -0.003 percent. Outstanding Treasury Bills amount to Euro 230,550,000 - an increase of Euro 16.5 million from the previous week.   

Euro zone private businesses expanded at their fastest pace in four years this month, a survey showed on Tuesday, providing the clearest signs yet of a solid recovery in the region. The bright readings for the euro zone were complimented by surveys out of Germany and France, the bloc's two largest economies, which showed both factories and services firms grew much more quickly than expected.  Coming at a time when global financial markets are transfixed by the stand-off between Greece and its creditors, the data are likely to cheer the European Central Bank which is printing 60 billion euros a month to boost growth and inflation.

A gauge of U.S. business investment spending plans rose in May, a tentative sign that the manufacturing sector was stabilizing after hitting a soft patch in recent months.  But the lingering effects of lower oil prices and a strong dollar will continue to constrain factory activity for a while, economists say. Other data showed new home sales increased to a more than seven-year high in May.  Manufacturing is lagging an overall rebound in the economy after output shrank at the start of the year. Despite the weakness in factory activity, the Federal Reserve is expected to raise interest rates this year.

Greece's government expressed confidence that parliament would approve a debt deal with lenders, despite an angry reaction from some of its own lawmakers who accused it of caving in to pressure for more austerity. Concessions offered by Prime Minister Alexis Tsipras, including hikes to tax and pension contributions, garnered a cautious welcome from euro zone leaders but triggered a furious reaction from some in the ruling Syriza party.  One lawmaker said the deal was tantamount to a "tombstone" for Greece, after repeated rounds of austerity during five years of crisis.

Forex

The The dollar hovered at its highest in over a week against a basket of major currencies, a day after its biggest one-day bounce this month as the market's focus shifted from Greece to prospects for higher U.S. interest rates.

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