IMF warns bond yields could see a 'disorderly' spike as debt, inflation risks worsen

The IMF warns that sovereign bond yields may spike disorderly due to rising inflation, high debt levels, and increased borrowing by AI firms competing for investor capital. This could destabilize global financial markets and reduce asset values, including AI-related assets. The warning comes amid multidecade highs in bond yields driven by energy costs and tighter monetary policies.