2025 marks a turning point for the Treasury market—its strongest year since 2020. The shift stems from two converging forces: tightening US trade policies that have dampened economic momentum, and the Federal Reserve's strategic pivot toward rate cuts driven by softening labor-market conditions.

This backdrop shapes everything from bond yields to broader financial conditions. For investors and traders, it's a reminder that macroeconomic headwinds often trigger policy reversals faster than expected. When economic activity slows and employment weakens, central banks respond with accommodation—a dynamic that typically ripples across asset classes, including crypto markets where macro sentiment plays a substantial role.