Democratic Senate leader Chuck Schumer and Republican counterpart Mitch McConnell agreed on a proposal to fund federal agencies through mid-February, clearing the way for a House of Representatives vote on Thursday that would be a critical step in averting a partial government shutdown. Many investors are reluctant to hold debt that comes due during the risk period, however, which has produced a kink in the U.S. Treasury yield curve where bills that mature in mid-to-late December are trading at a premium to debt that comes due at a later date. The government had temporarily raised the debt ceiling in October.

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