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U.K. in danger of ‘debt death spiral,’ says Bridgewater founder Dalio - MarketWatch

1. Dalio warns of a potential 'debt death spiral' for the UK. 2. Growing borrowing needs may negatively impact UK bond prices. 3. UK gilt yields rose despite easing monetary policy and weak economy. 4. US Treasury yield worries mirror UK's fiscal challenges. 5. 10-year gilt yield recently reached a 2008 high at 4.90%.

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FAQ

Why Bearish?

Increasing borrowing costs and rising yields can lead to lower bond prices, as seen in past instances like Greece's debt crisis.

How important is it?

The article highlights significant risks related to government borrowing and bond market dynamics, affecting TMBMKGB-10Y prices.

Why Long Term?

The structural issues facing UK and US borrowing will likely persist, affecting market confidence and prices over an extended period.

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