Norvig also said that a possible agreement in Congress to pass a federal funding bill, as well as to approve payment on debt obligations, would provide a boost to markets.
(Read more: 'Horrendous' retail holiday ahead: Steve Kernkraut)
"I think there's certainly a possibility that the solution will be a short-term one, but I think that's still important because if you look at what happened this week with the T-bill market going crazy, and even the funding market, more broadly, looking quite unstable, if we can actually push this tail risk out of an actual default consideration, that is massively helpful to the market," he said.
Nordvig said that he calculated a 70 percent chance that Congress would strike a deal before the Oct. 17 default deadline.
(Read more: 'Don't run for cover' from stocks: Joe Terranova)
The risk premium trade could remain the same for the time being, he added.
"I think it could be a longer-term trend because I think what's going to happen is that if we get a short-term solution now, the market's going to be less concerned the next time around because they'll say, 'Ah, we're going to have a solution the next time around, too.'"
— By CNBC's Bruno J. Navarro. Follow him on Twitter @Bruno_J_Navarro.