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Global fixed income markets showed a cautious but constructive tone, with UST yields broadly stabilizing amid mixed economic signals. The 2Y and 3Y UST yields remained range-bound, reflecting anticipation of a late-cycle policy pivot, while the 10Y yield demonstrated mild downward pressure as markets priced in a slower growth outlook with controlled inflation. Credit spreads on investment-grade bonds hovered near tight levels, suggesting limited room for further compression, while high yield remained under moderate pressure amid ongoing economic uncertainty. Central banks’ stance on future policy moves continued to be a key driver; expectations of eventual rate cuts supported flattening yield curves, especially in the front end. The dollar’s direction influenced emerging market debt sentiment, with moderate dollar weakness providing some relief. Fiscal challenges persist, notably in major developed economies, presenting ongoing risks despite the generally positive medium-term outlook. Overall, the environment favors strategic duration extension and selective credit exposure positioned to benefit from stable or declining yields and improving risk sentiment.