IMF warns about major economic risks and a ‘disorderly’ rise in bond yields

The International Monetary Fund (IMF) released its October Global Financial Stability Report on Tuesday, which outlines three major threats to global economies: an AI market correction, spiking government bond yields and cyberattacks. Although global economies have proven mostly resilient so far, the IMF’s directors are urging policy makers and business leaders to take immediate action to mitigate the risk from these potential “shocks.”“Directors broadly concurred that risks to the outlook remain skewed to the downside,” the report said.“In a shock prone world, the capacity to deliver targeted support is crucial, and [directors] called for strengthening delivery mechanisms that can be scaled rapidly when shocks hit.”Rising bond yields have been a warning sign for financial markets in recent months amid the Iran war’s risk to global economies, and the IMF says those risks are becoming more of a concern. Story continues below advertisement Bonds are essentially loans, where governments or companies look to borrow money from the general public, and those bond purchasers expect a return or interest on that borrowed money, which is known as the yield on those bonds.Those yields fluctuat...