HONG KONG, 13th - The Deputy Director of the Capital Markets Department at the International Monetary Fund (IMF), Vamvarekidis, said rising government bond yields are the biggest emerging risk facing the global financial system.
Vamvarekidis said the rise in yields is clearly the most significant change in the risk outlook since the IMF released its previous assessment in April.
He stated, "Other risks and vulnerabilities have also intensified," pointing out possible market corrections in the field of artificial intelligence that could trigger broader impacts. However, the risk of a significant rise in sovereign bond yields is considered a more immediate and pressing threat.
The IMF said in its 'Global Financial Stability Report': "High debt levels and rollover risks remain unresolved, making bond markets more vulnerable to more frequent fiscal and inflationary shocks." (rc)
Vamvarekidis said the rise in yields is clearly the most significant change in the risk outlook since the IMF released its previous assessment in April.
He stated, "Other risks and vulnerabilities have also intensified," pointing out possible market corrections in the field of artificial intelligence that could trigger broader impacts. However, the risk of a significant rise in sovereign bond yields is considered a more immediate and pressing threat.
The IMF said in its 'Global Financial Stability Report': "High debt levels and rollover risks remain unresolved, making bond markets more vulnerable to more frequent fiscal and inflationary shocks." (rc)
