“A measure of the cost to insure exposure to U.S. government debt declined on Tuesday as Democratic President Joe Biden and top congressional Republican Kevin McCarthy edged closer to a deal to avoid a debt default,” said Reuters early Wednesday morning in Asia.

The news quotes the S&P Global Market Intelligence data while marking a fall in the one-year US Credit Default Swap (CDS) spreads from 164 basis points (bps) to 155 bps. “Spreads on five-year CDS decreased to 69 basis points from 72 bps on Monday,” reported the news.

While providing details, Reuters also states that a closely-watched meeting on Tuesday between President Biden and McCarthy, the speaker of the House of Representatives, ended on an upbeat note, with the White House describing the meetings as "productive and direct."

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