Billionaire Ray Dalio warned that the US Treasury bond market is vulnerable to declining demand from Japan and others, which will become a potential pain point for the US bond market, which has experienced sharp fluctuations this year. On Tuesday, Dalio, founder of the Bridgewater Fund, said in an interview with the media in Singapore that about one-third of America's debt financing relies on foreign capital, much of which comes from Japan and China. Dalio said that the US is nearing the limit of its debt cycle. Dalio once again warned that the US may face a debt crisis within three years. Currently, the sell-off in global government bonds, including US Treasury bonds, is driving borrowing costs to multi-year high levels. Inflation, fiscal spending, and resilient economic growth have weakened market demand for fixed-income securities. Bonds continued their month-long decline this week. The yield on US 10-year Treasury bonds is currently around 5.3%, which is the highest level since 2002.

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