Ray Dalio · Bloomberg · Bloomberg
David Ramli and Ruth Carson
Mon, October 5, 2026
(Bloomberg) -- Billionaire Ray Dalio warned that the US Treasury market is vulnerable to a pullback of demand from China and Japan, highlighting a potential pain point for a market that has endured wild swings this year.
The US relies on foreign capital for about a third of its debt, and a lot of that is coming from Japan and China, Dalio, the founder of Bridgewater Associates said in a Bloomberg Television interview with Haslinda Amin in Singapore on Tuesday. Geopolitical issues mean China doesn't want to continue to accumulate US debt, while Japan has lent "a lot of money" that the country now wants to take back, he said.
Dalio repeated his warning that the US faces a potential debt crisis in three years. He spoke as a selloff in government bonds including Treasuries drives up borrowing costs to multi-year highs. Inflation, fiscal spending and resilient economic growth have weakened demand for fixed-income securities around the world.
Bonds have extended their months-long slide this week. Yields on 10-year US Treasuries are trading at around 5.3%, hovering at levels last seen in 2002.
--With assistance from Abhishek Vishnoi and Haslinda Amin.
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