The Stoxx 600 index is up 0.6% today, and there us markets rallied yesterday as Biden and McCarthy got closer to an agreement over the budget. The president said that the debt ceiling increase was certain but the sides are negotiating the specifics of the budget.
The markets will probably react positively when the sides reach a final agreement.
However, the bond markets didn't have a similar reaction. Bond yields increased today and the price of the credit default swaps on US Treasury bonds are still near their all time high. If the negotiations are successful the yields probably will fall and the CDS's will retreat to their previous prices.
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