Debt

Global markets climbed overnight on news the US has agreed a solution to its debt crisis, which will ease fears of the country losing its AAA-credit rating.

President Barack Obama has announced a deal to end the US debt crisis, which will raise the nation's debt ceiling by at least $2.1trn and cut the federal deficit by as much as $2.5trn over a decade.

The dollar has hit a record low against the Swiss franc as investors are kept waiting for signs of progress in US lawmakers' attempt to raise the debt ceiling.

Newton income manager Iain Stewart has warned the problems in Greece are just the tip of the iceberg of a ‘monetary distortion' across the developed world and could trigger 'debt dominoes' throughout Europe.

The US Congress moved one step closer to sealing a deal on its debt ceiling, pushing down yields on 30-year government bonds.

Barack Obama has pleaded with Congress to come up with a compromise to raise the country's debt ceiling and stave off default, reports the FT.

Moody's has downgraded Portuguese debt to 'junk' status on fears it will need a second bail out just months after it received €78bn.

THE BEST VS THE REST IN FIXED INCOME

The European Union said Greece will not be allowed to default because of the weak state of the region's banking system.

The value of Portuguese bonds has dropped and yields have widened to record levels, as concern mounts over EU leaders' failure to resolve the Greek debt crisis.