[Dalio Warns U.S. Treasury Sell-Off Far from Over: Massive Issuance and Weakening Buyer Demand Intensify Debt Pressure] BlockBeats News, October 14 – Bridgewater Associates founder Ray Dalio warned in a LinkedIn post on Tuesday that the U.S. Treasury market is facing dual pressures of increasing bond supply and weakening investor demand, suggesting the bond bear market may persist. He pointed out that as the U.S. government issues large amounts of new debt, yields could rise further, driving up government financing costs and exacerbating the debt burden, creating a vicious cycle. Dalio estimated that the U.S. will need to refinance approximately $10 trillion in maturing debt this year, while also taking on about $2.1 trillion in new borrowing. At the same time, high-capital-expenditure sectors like AI are competing for funds, with corporate bond issuance further intensifying the competition for capital. He also warned that if traditional overseas buyers like Japan reduce their allocations to U.S. Treasuries, the supply-demand imbalance could worsen further. Dalio views stress in the corporate credit market as an early signal of tightening liquidity. He stated that unless high interest rates exert enough pressure on the real economy and financial markets to force a rebalancing of supply and demand for capital, debt pressures will be difficult to alleviate. Dalio remains bearish on U.S. Treasuries in the long term and tends to recommend that investors reduce bond holdings and increase allocations to gold. The report noted that the U.S. Treasury benchmark index has already fallen about 2.4% this year, with the market facing the risk of its first annual decline since 2022. [Original Link]