The International Monetary Fund (IMF) is warning that a dangerous combination of soaring government debt, persistent inflation and an unprecedented borrowing boom by artificial intelligence companies could trigger a sudden surge in bond yields, potentially destabilizing financial markets worldwide.
In its latest Global Financial Stability Report, released Tuesday during the IMF-World Bank annual meetings in Bangkok, Thailand, the fund cautioned that sovereign debt markets are becoming increasingly vulnerable to financial shocks as governments and technology giants compete for investors' money.