Treasury bonds play a crucial role in financial markets as a benchmark for risk-free rates and long-term interest rate trends. They provide investors with a stable income stream and are used by institutions to manage interest rate risk. Governments use T-Bonds to finance budget deficits and fund public projects. During economic downturns, investors often turn to Treasury bonds as a safe-haven asset, helping stabilize financial markets. Additionally, central banks and pension funds hold Treasury bonds as part of their asset allocation strategies.