There are still some optimists in the market confident that a solution will be found in time to the US debt-ceiling crisis even as the Washington stalemate persists and many investors shun the most at-risk Treasury bill issues.

Treasuries fell across the curve and the dollar strengthened against most of its major peers after Federal Reserve Governor Christoper Waller pushed back on bets the US central bank was nearing the end of its hiking cycle, while traders were also on alert for a scheduled appearance by his colleague Lael Brainard.

One of the US bond market’s most widely watched indicators of potential recession risk has reached levels last seen in 2007.

More and more, investors are wondering whether the Federal Reserve will tweak its monetary policy toolkit to help out money markets that are starting to drown in a sea of cash.