Oguz Erkan(@oguzerkan):Ray Dalio: “Deficit should go below 3% of GDP or there’ll be a supply-demand problem in bonds.” He said this last year, and now it’s happening. Nobody wants 30-year US bonds below 5%. Now Citadel says the same and warns for higher inflation. Dump the dollar, own hard assets.

2026.08.25 17:19

Ray Dalio: “Deficit should go below 3% of GDP or there’ll be a supply-demand problem in bonds.” He said this last year, and now it’s happening. Nobody wants 30-year US bonds below 5%. Now Citadel says the same and warns for higher inflation. Dump the dollar, own hard assets.

*Walter Bloomberg@DeItaone

2026.08.24 15:31

CITADEL WARNS BESSENT’S BUYBACKS COULD BACKFIRE Citadel Securities calls Treasury’s expanded bond buybacks “financial repression,” warning they could weaken the dollar and fuel inflation. Bessent’s strategy aims to suppress long-term yields, potentially using Treasury’s cash reserves to fund purchases. But Citadel argues intervention doesn’t solve the underlying problem of high deficits and inflationary pressure — it simply shifts stress elsewhere. The firm says lasting relief requires tighter fiscal policy and potentially higher Fed rates.