Ray Dalio Warns U.S. Treasury Selloff Is Far From Over

Ray Dalio, founder of Bridgewater Associates, warned on Tuesday that the selloff in U.S. Treasuries is far from over. He stated that the market is entering a phase where surging government and corporate borrowing is colliding with weakening demand from traditional buyers.

Dalio described a spiral in which an expanding supply of bonds drives up yields, which in turn raises borrowing costs and further increases debt levels. He noted that this cycle is unlikely to conclude until higher interest rates weaken the economy and financial markets sufficiently to restore balance between supply and demand.