Bridgewater founder Dalio warns: US bond sell-off far from over, supply-demand imbalance worsens debt spiral

PANews reported on October 14 that Bridgewater founder Ray Dalio wrote that the United States is entering a new phase in which expanding bond supply pushes yields higher, a trend that will directly drive up borrowing costs and further inflate the government's debt.

Dalio predicted that unless high interest rates cause enough damage to the real economy and financial markets to restore balance between the supply and demand of funds, this vicious debt spiral will be difficult to stop. As a long-time warner of a US debt crisis, Dalio has previously advised investors to sell bonds and buy gold and Bitcoin.

This month, the yield on the US 10-year Treasury briefly surged to its highest level in nearly 25 years, approaching the 5.4% mark. After yields hit their phase highs, some investors and strategists, including BlackRock and Morgan Stanley Investment Management, have turned bullish on US Treasuries, believing that the current high yields offer allocation value.