U.S. President Joe Biden on Saturday signed a bill that lifts the U.S. government's $31.4 trillion debt ceiling, averting what would have been a first-ever default.

The House of Representatives and the Senate passed the legislation this week after Biden and House Speaker Kevin McCarthy reached an agreement following tense negotiations.

The U.S. Treasury Department had warned it would be unable to pay all its bills on June 5 if Congress failed to act by then.