Crisis, what crisis? Debt deal justifies markets’ sangfroid

Now that Democrats and Republicans have agreed to fund the US government until January 15 and raise the debt ceiling until February 7, US dollar deal flow is likely to accelerate in the coming days and weeks. Borrowers are widely expected to come to the bond markets to lock in low rates in calm markets before volatility returns next year when the Federal Reserve is expected to taper its asset purchase programme and politicians resume their battle over government spending and debt limits.