Ray Dalio warns that US Treasuries are vulnerable to weakening demand from China and Japan, the two largest foreign creditors of the United States. China's holdings have fallen from $1.3 trillion in 2013 to approximately $618 billion, while Japan holds about $1.1 trillion. Dalio stated that with the 10-year US Treasury yield hovering around 5.3%, reduced foreign demand could intensify US borrowing pressure.