- The IMF's Global Financial Stability Report, released October 13, 2026 at the IMF-World Bank annual meetings in Bangkok, warns that government bond yields could rise in a disorderly fashion.
- Several advanced-economy government bond yields have climbed to multidecade highs on higher energy costs tied to the Middle East conflict and expectations for tighter monetary policy.
- Hyperscalers' share of global investment-grade bond issuance has risen to 10% from less than 1% since 2024, adding competition for investor demand alongside sovereign debt.
- Hedge funds' share of U.S. Treasuries rose to about 9% in 2025 from about 4% in 2022, leaving leverage that the IMF says makes the market susceptible to a disorderly unwind.
- The IMF says liquidity remains stable in the U.S., Europe and the U.K., while Japan's government bond market liquidity continues to deteriorate.
- The IMF urges debt managers to lengthen maturities because rollover risk is exacerbated by large-scale replacement of long-term debt with short-term borrowing.
Quotes
“susceptible to more frequent fiscal and inflation shocks”
“susceptible to a disorderly unwind”