Australian bond futures prices are higher after US Senate leaders reached a last-minute deal that temporarily extends the debt ceiling and will reopen the government.
Senate leaders have announced an agreement that will reopen the government with a temporary budget until January 15 and extend the US borrowing authority until February 7.
The deal must now be approved by Congress.
ANZ economists said US Treasuries rallied due to the perceived reduction of a US debt default risk.
"US Treasuries were higher overnight with US lawmakers reportedly reaching tentative agreement to suspend the debt ceiling for a few months and remove the immediate risk of default," ANZ economists said.
"Australian bond futures also gained."
At 0830 AEDT on Thursday, the December 10-year bond futures contract was trading at 95.850 (implying a yield of 4.150 per cent), up from 95.790 (4.210 per cent) on Wednesday.The December three-year bond futures contract was at 96.840 (3.160 per cent), up from 96.800 (3.200 per cent).