Democrat and Republican senators have struck a bipartisan deal to reopen the government and extend its borrowing authority - ending the 16-day government shutdown by funding the government to January 15.The parties also settled on lifting the $US16.7 trillion debt limit through to February 7. Under the agreement, the government would be financed at tight levels, reflecting across-the-board spending cuts that went into effect in March. Negotiators will also be required to complete work on a detailed budget plan for the next decade by December 13. Although the deal in Washington to kick the debt can down the road will provide temporary relief to the world's financial markets, it does little to prevent the hostile political debate over the budget reigniting in the new year. Stocks rallied 1% and bond yields fell over 1% as markets conclude that the taper is (temporarily) off on the fiscal saga. (VIEW LINK)
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