JPMorgan Chase CEO Jamie Dimon has issued another warning about the bond market, advising investors to diversify their portfolios outside the US. In an interview with Fox Business Network’s “Mornings with Maria” show, Dimon described the worsening fiscal situation in the US as a “big deal” and a “real problem,” citing concerns over the federal deficit and tax-cut agenda.
Dimon said the bond markets will face difficulties at some point, although he couldn’t predict when it would happen. He emphasized the need for pro-business measures to stimulate growth. The comments come as US government debt has been selling off in New York trading, with yields on 2-year bonds increasing by 46.9 basis points from April 4.
The warning is part of a growing trend of skepticism towards US government debt due to President Trump’s proposed tax-and-spending megabill and ongoing trade rhetoric uncertainty over tariffs. As the 10-year yield has jumped by 46.9 basis points, investors are looking for alternative assets to protect their portfolios.
Source: https://www.marketwatch.com/story/jamie-dimons-bond-market-warnings-put-investors-on-alert-to-diversify-outside-u-s-f8e4c924