Ray Dalio Warns China, Japan Are Pulling Back From US Debt - iShares 20+ Year Treasury Bond ETF (NASDAQ:T

Ray Dalio warned that the Treasury market could face a new pressure point if China reduces its exposure to U.S. debt and Japan seeks repayment. Speaking to Bloomberg Television on Tuesday, Dalio said China “doesn’t want to continue to accumulate” Treasuries and that Japan has “lent a lot of money” and now wants much of it back. He noted foreign capital supplies nearly a third of what the U.S. borrows, so any pullback could push yields higher. The 10-year Treasury is around 5.3% and close to levels last seen in 2002, weighing on long-dated bonds. The iShares 20+ Year Treasury Bond ETF (TLT) hit a 52-week low last week.