Ray Dalio Warns China, Japan May Pull Back From US Treasuries

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1. 1h ago

   Ray Dalio Warns China and Japan May Pull Back From US Treasuries

   Billionaire investor Ray Dalio warns that the United States Treasury market is vulnerable to reduced demand from China and Japan. According to reports from Bloomberg and other financial outlets, the Bridgewater Associates founder highlights that the US relies on foreign capital for about one-third of its debt. Dalio points out that China and Japan have already been reducing their holdings, raising concerns over potential market instability. The warning underscores growing worries about US debt limits and the stability of bond yields as foreign participation shifts.

   Why it matters

   The United States relies heavily on foreign investors to absorb its massive debt issuance, with Japan and China acting as major traditional buyers. A significant reduction in demand from these two nations could trigger severe disruptions in the Treasury market, which has already experienced heavy volatility and wild swings. Ray Dalio warns that a broader debt crisis could emerge within three years as current financial trajectories approach their structural limits.

   What is confirmed

   • Billionaire Ray Dalio warned that the US Treasury market is vulnerable to a pullback of demand from China and Japan.
   • China and Japan have already been paring their holdings of US debt.
   • The United States depends on foreign capital for about a third of its debt.

   Still unconfirmed

   • Reduced Chinese and Japanese holdings could trigger a US Treasury crisis with risks rising within three years.

   What to watch next

   • Any official announcements or data releases showing shifts in Chinese and Japanese holdings of US Treasuries
   • Movements in US Treasury yields and market reactions to foreign demand levels
   Sources used for this update (23)

   1. Bloomberg.com — Ray Dalio Warns China, Japan May Pull Back From Treasuries
   2. Seeking Alpha — Ray Dalio flags China and Japan pulling back from U.S. debt - report
   3. finance.biggo.com — Bridgewater Founder Dalio Warns: Reduced Chinese and Japanese Holdings Could Trigger a U.S. Treasury Crisis, Risks Rising Within Three Years
   4. www.businesstimes.com.sg — Billionaire Ray Dalio warns China and Japan may pull back from US Treasuries - The Business Times
   5. Business Insider — Ray Dalio predicts a debt crisis within 3 years as we're 'approaching our limits'
   6. equiti.com — US Treasury yields face China and Japan demand risk
   7. www.zerohedge.com — S&P Set To Open At Record High As Oil Slides, Bond Rout Takes A Breather | ZeroHedge
   8. www.home.saxo — Asia Market Quick Take – 07 October, 2026 | Saxo
   9. ca.finance.yahoo.com — Ray Dalio Warns China, Japan May Pull Back From US Treasuries - Yahoo! Finance Canada
   10. www.home.saxo — Market Quick Take - SP 500 sets a fourth record before Fed minutes - 07 October 2026 | Saxo
   11. en.wikipedia.org — Ray (film) - Wikipedia
   12. www.youtube.com — Ray - YouTube
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