Dalio Warns China and Japan Could Trim U.S. Treasury Holdings as Debt Risks Mount
Investor Ray Dalio has warned that China and Japan may reduce their exposure to U.S. Treasuries as concern deepens over America’s fiscal trajectory and the sustainability of its debt burden. The remarks add fresh pressure to a market already sensitive to rising deficits, higher-for-longer interest rates and the possibility of a broader repricing in sovereign debt. Dalio’s view underscores a growing debate over whether the world’s largest bond market can continue to absorb heavy issuance without a meaningful rise in yields.
