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UST yields edged higher amid stable risk sentiment, with 10Y closing at 4.19% after a 2bp rise from 4.17% prior session. 2Y yield ticked up 1bp to 3.48%, while 3Y held near 3.55%, keeping curve steepening intact. IG credit spreads steady at 79bp OAS, near historic tights on robust fundamentals. HY BB OAS tightened 2bp to 1.69%, signaling low default fears despite elevated yields around 8.5%. Dollar corporate issuance surged to $61B, locking in 4.8% high-grade yields pre-geopolitical noise from Venezuela events. EM debt outperformed peers with strong inflows, buoyed by dollar weakness. MBS and munis showed resilience, with light supply aiding modest gains. Trading volumes thinned post-holidays but liquidity held firm. Outlook favors carry trades in IG and select HY amid Fed pause expectations, though fiscal stimulus risks yield upside. Steepener positioning gains traction as front-end lags back-end on policy bets. Credit selection key in tight spreads; favor BB over CCC for risk-reward. Volatility low, but monitor oil and tariffs for spread volatility. Duration risk balanced via swaps; relative value tilts to EM over DM credits. Portfolio hedging via payers prudent if 10Y tests 4.30%