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PIMCO on the budget breakthrough

John Boehner (R-OH) (L) enters a news conference on the two-year budget deal with the White House in Washington, October 27, 2015.
Gary Cameron | Reuters
John Boehner (R-OH) (L) enters a news conference on the two-year budget deal with the White House in Washington, October 27, 2015.

Congressional leaders reached a tentative budget deal with the White House overnight, that would set government funding levels for the next two years and extend the debt limit through 2017.

The two year budget deal would also avert a fiscal standoff as the Republican-led U.S. House of Representatives prepares for new leadership

Read MoreHouse Speaker Boehner says Congress has a budget agreement

PIMCO, the bond fund giant with $1.47 trillion in assets under management, called the development "positive" and considers the deal "unequivocally" good for the economy.

Libby Cantrill, PIMCO's public policy analyst, told CNBC's "Power Lunch" on Tuesday that Congress reached a significant inflection point.

"First and foremost, the news immediately took uncertainty off the table. Secondly, it moved the debt ceiling to March 2017, well past the elections. And it also set top-line spending numbers for 2016 and 2017."

"Of course, an announced budget deal is different from a passed budget deal," said Cantrill. "But the prognosis for passage is looking more and more likely."

Cantrill also said the chances for a government shutdown this December look "remote. "All around, the measure represents marginal fiscal stimulus, a big change from a few years ago. Spending now shifts from a headwind to a mild tailwind, which is an net positive for the economy.

This bipartisan agreement would provide $80 billion in sequester relief: $50 billion the first year and $30 billion in the second which would be equally divided between defense and non-defense spending.

Government funding is set to expire on December 11th, while the debt limit deadline is November 3rd, according to the Treasury Department.