Billionaire Ray Dalio warns China and Japan may pull back from US Treasuries
The two countries have already been paring their holdings
Billionaire Ray Dalio has expressed concern that China and Japan may reduce their investments in US Treasuries, potentially causing hardship for a market that has experienced significant fluctuations this year. The US Treasury market relies heavily on foreign capital, with Japan and China accounting for a substantial portion. Dalio, the founder of Bridgewater Associates, cited geopolitical and economic issues as reasons for China's reluctance to continue accumulating US debt.
Similarly, Japan has borrowed considerable sums and is now seeking to repay its creditors. Treasury Secretary Scott Bessent attempted to reassure investors that economic growth and spending restraints would gradually alter the trajectory of US government borrowing. Dalio's warnings indicate that the government still has a ways to go in convincing some investors.
Global bonds have experienced a decline, with yields on 10-year US Treasuries currently standing at around 5.3 percent, a level not seen since 2002. The US Treasury market has faced increased investor apprehension over government borrowing and inflation risks.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
Also reported by 1 other outlet
- Ray Dalio flags China and Japan pulling back from U.S. debt - report seekingalpha.com
