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The fixed income market saw marginally lower UST yields across key maturities, with the 10Y yield ending about 2bp down near 4.08%. The 2Y and 3Y notes traded slightly lower, tracking subdued rate hike expectations amid dovish signals from central banks. Credit spreads on investment grade corporates widened modestly, registering a 3bp increase to around 85bp, reflecting a cautious stance despite resilient demand and oversubscribed new issues. High yield credit spreads remain near multi-year tights, supported by improving fundamentals and lower default risks, while loan and preferred segments showed some retreat. Overall, Treasury curve positioning favored modest flattening as front-end yields adjusted to expectations of a pause or rate cuts ahead, offsetting duration sensitivity in longer maturities. Market participants brace for volatility due to fiscal uncertainties and global economic concerns, with rate volatility expected to pick up and credit spreads influenced by technical factors such as supply-demand imbalances. The USD continues to weaken against major currencies, prompted by divergent central bank policies and a softer U.S. labor market outlook, which may influence fixed income flows and currency hedging strategies in the near term.