Atanasios Vamvakidis, Deputy Director of the International Monetary Fund's Capital Markets Department, said that the sharp rise in government bond yields is the biggest emerging risk facing the global financial system. Wamwakidis said that the rise in yield is “clearly” the biggest change in risk prospects since the International Monetary Fund released its last assessment in April. He said “other risks and vulnerabilities have also increased,” and pointed out that there may be a “market adjustment” in the field of artificial intelligence, which will have a wider impact. However, the risk of a sharp rise in sovereign bond yields is seen as a more immediate and urgent threat. The IMF wrote in its Global Financial Stability Report: “High debt and rollover risks remain unaddressed, making the bond market more vulnerable to more frequent fiscal and inflationary shocks.”

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