Bridgewater founder: U.S. Treasury risk rising, recommends reducing bond holdings, increasing gold and a small amount of Bitcoin

Odaily News Bridgewater Associates founder Ray Dalio stated that recent events, including the Japanese government selling part of its U.S. Treasury holdings, U.S. long-term Treasury yields hitting new highs while the dollar weakens, and the U.S. Treasury Department's announcement of bond purchases, bear a strong resemblance to his proposed "classic debt restructuring template."

Dalio believes that when government debt growth outpaces income growth, interest payments will continue to squeeze fiscal space; if Treasury supply exceeds market demand, it could push yields higher and force central banks to stabilize markets by purchasing government bonds and increasing money supply, thereby weakening the currency's value.

Against this backdrop, Dalio recommends reducing bond allocations, increasing non-debt assets such as gold, while also allocating a small amount of Bitcoin.