US senate works out deal to stop default and open government

AN ELEVENTH-hour deal crafted in the US Senate will pull the United States back from the precipice of defaulting on its debt and to re-open the government until the middle of January next year.

The Dow Jones industrial average soared on the news that the threat of default was fading, nudging a 200-point gain in morning trading.

"Our country came to the brink of disaster," Senator Harry Reid, the Democrat majority leader, conceded announcing a compromise bill on the Senate floor."

"It's been a long challenging few weeks for Congress and the country," Mitch McConnell, the Republican minority leader, added, confirming the sealing of the package.

The bill still requires passage by both the Senate and the House of Representatives before being sent for signature by President Barack Obama, perhaps as early as tonight.

Importantly, Ted Cruz, the Tea Party senator from Texas said he would not attempt to use parliamentary rules to gum up the vote in the Senate as some had feared.