The story isn't over yet (things can always go wrong) but the party offered to hike the debt ceiling for three months, so that it would come up after the sequester (automatic spending cuts) and continuing resolution (the budget) debates were dealt with.

Even though this is just a 3-month hike, this is basically a total fold on debt ceiling brinksmanship, since the real battles will come before it, and they're not going to come up with a deal on the sequester and the budget, without also coming to a deal on the debt ceiling.

In a blog post, Paul Krugman admits he called it wrong.