Market jitters ease on hope for Greece deal, EU welcomes signs of progress

Market anxiety eased in Greece after the country's finance minister, Yanis Varoufakis, said he was confident of reaching a deal with bailout creditors as soon as next week.

Shares were up over 3 percent on the Athens Stock Exchange in early afternoon trading Tuesday, while bond yields retreated from a Monday spike, with the 2-year rate dropping by more than a percentage point to 22.9 percent.

Greece's new left-wing government is struggling to agree on terms for the release of remaining bailout money needed to avoid a summer default.

In Brussels, EU Commission spokesman Margaritis Schinas said the troubled negotiations were making progress, "albeit at a slow pace."