Houthi rebels sign deal with Yemen parties to form new government

SANAA (Reuters) - Yemen's Shi'ite Muslim rebels signed an agreement with other political parties on Sunday to form a more inclusive government after rebels advanced on major state institutions in the capital Sanaa, largely unopposed by troops and security forces.

The accord aims to address a decade-old Shi'ite Houthi insurgency and a spate of bloodshed this month that posed a major threat to U.N.-backed efforts to stabilise the country, which neighbours oil giant Saudi Arabia and has also struggled to contain al Qaeda militants and southern secessionists.