There was a suggestion earlier yesterday an agreement would be reached but at 4pm, reports from Washington said while US Senate leaders continued to negotiate, a deal was not expected last night.
Lawmakers said a deal was close on legislation to raise the nation's borrowing authority and provide temporary government funding, but details remained to be finalised.
The Senate and House of Representatives are scheduled to hold sessions today (NZ time) and they may debate any deal Senate leaders ultimately strike.
Congress is racing against an October 17 deadline, when the Treasury Department says it will bump up against its legal borrowing limit.
If Washington does not reach a deal, the Government by law will no longer be able to add to the national debt and will have to rely on incoming revenue and about $US30 billion ($NZ35.75 billion) in cash to pay the nation's many obligations.
If the money runs out, a global financial crisis could follow if investors decide US debt, used as collateral for trillions of dollars in financial deals, are no longer worth holding.
Ratings agency Fitch warned it could cut America's prized AAA credit rating.
Mr Timms looked across most markets which were trading yesterday and noted either slight rises or slight falls of value around the world. The NZX had a ''reasonable day'' but was being driven by domestic demand rather than anything offshore.
''It seems the deal is going right down to the wire, like last time. In the meantime, everyone is sitting on their hands waiting to get direction from the US,'' he said.
